Reference no: EM133109880

1. Which one is not related to working capital
   1. net current assets
   2. provide liquidity to firms
   3. capital used for long-term investment of the business
   4. addresses the seasonal or cyclical financing needs
2. ________is one of the important sources of medium- and long-term financing where the owner of an asset gives another person, the right to use that asset against periodical payments.
   1. hire purchase
   2. lease financing
   3. working capital
   4. none of these
3. The bid-ask spread (informally referred to as the buy-sell spread) is the difference between the price a dealer will buy and sell a currency
   1. true
   2. false
4. Cross Borders Co Ltd has generally a Current ratio of 2.75. So if their current liabilities are $707,075 then their current assets would be ______
   1. $202021.4
   2. $707078.50
   3. 1,767,687.50
   4. 2,474,762.50
   5. none of these
5. Mr. Silvester Stallone came to Banagaen went to a Siam Commercial Bank for changing three 1000 dollar bills into THB. The teller gave him the 'ASK and BID' as 33.375 and 33.129. How much in THB (baht) can Mr. Silvester Stallone get? 
   1. $199512
   2. $100125
   3.  $99387
   4. None of the above
6. Capital structure refers to the specific mix of debt and equity used to finance a company's assets and operations
   1. true
   2. false
7. Most currency pairs are priced out to five decimal places and the pip change is the last (fifth) decimal point.
   1. true
   2. false
8. Ms. Angelina Jolie has an option to move all her money out of the bank to invest in shares. She knows her returns would go up 8 times but she can also lose all her monies. This is also known as ________
   1. diminishing returns of investment
   2. no risk no return
   3. risk return trade off
   4. lower returns promise greater safety   
9. The main 4 financial markets are 
   1. stock market, bond market, commodities market, derivatives market
   2. bond market, commodities market, auto market, cash markets
   3. commodities market, derivatives market, auto markets, stock markets
   4. None of these
10. __________: Risk-Free Rate + [Beta X (Expected Market Return - Risk-Free Rate)]
    1. DDM
    2. CAPM
    3. WACC
    4. SML
11. WACC takes into account systematic risk, which is left out of other return models, such as the dividend discount model.
    1. true
    2. false
12. M&M theories have 4 main assumptions. Which one is 'not' one of these?
    1. There are no taxes.
    2. Transaction cost for buying and selling securities, as well as the bankruptcy cost, is nil.
    3. Information with each company is different.
    4. The cost of borrowing is the same for investors and companies