Deneme Sınavı Soruları

1. Capital budgeting includes long-term decisions about non-current assets of a company.
2. Decisions about non-current assets need extra attention from managers because they are more expensive than the current assets.
3. The outcome of capital budgeting is either approval or rejection of the investment project.
4. In order to come to approval or rejection point, a financial manager needs analytical tools to make analysis.
5. There are a number of simple and sophisticated analytical tools that managers use for project analysis.
6. Main consideration is “return and risk” and “benefit and cost” of each project proposal.
7. In the end, if a financial manager approves an investment project, we can assume that he/she thinks that returns/benefits from the project will be greater than the associated risks/costs.

Which of the statements above related to capital budgeting are correct?

What is the return on invested capital (ROIC) if EBIT is $400,000, capital is $1,400,000 and tax rate is %40?

XYZ Corp. borrows $50,000 as a bank loan at an annual interest rate of %8. The company pays 25% corporate tax rate. What is the after-tax rate of borrowing for XYZ Corp.?

"Asymmetric information occurs ........................."

Which of the following is not one of the factors affecting the business risk of a firm?