Tuesday After 2rd

1. Which of the following is an objective of corporate financial management?

• Maximization of shareholder wealth

• Maximize the value of the firm's stock

• All of them are correct

• All of them are wrong

DPS (Dividend per share) and EPS (Earning per share) are the same when?

• The firm pays dividends in share

• The firm retains earning after tax

• The firm does not retain earning after tax

• Not enough information to conclude

3. Which of the following activities are assets management decision of a firm?

• Expand a factory

• Get a long –term debt to finance factory expansion

• Accounts receivable management

• All of them are correct

4. Which of the following is not affected by interest expense?

• EBITDA

• EBIT

• All of them are correct

• All of them are wrong

5. Which of the following costs cannot be used as a tax shield?

• Tax costs

• Interest for the outstanding debt

• All of them are correct

• All of them are wrong

Which of the following is affected by capital structure?

• ROA

• ROI

• All of them are correct

• All of them are wrong

7. Which of the following formulas is correct?

• EAT= EBT – Interest costs

• EAT= (EBIT-I)*(1-t)

• EAT = EBIT* (1-t)

• All of them are wrong

8. . The enterprise's decision to issue bonds instead of shares is a decision that belongs to:

• Investment decisions

• Financing decisions

• Assets management decisions

9. Which of the following ratio is the shareholders most interested in?

• ROI

• ROE

• ROA

• All of them are correct

10. What factors affect corporate finance?

• The financial intermediaries

• The provisions of the state

• The business areas

• All of them are correct