Net Present Value to Right Issues

What represents the company's assets and liabilities in terms of their current market values?

• Net Income

• Gross Asset Value

• Net Asset Value

• Shareholder Equity

What is the net difference between the total discounted value of future cash flows and the investment's present cost?

• Future Value

• Net Present Value

• Return on Investment

• Internal Rate of Return

What term refers to a fixed cost in short?

• Direct Cost

• Operating Leverage

• Variable Cost

• Break-even Point

What is an investor's combined investment in risky and riskless assets like stocks and T-bills called?

• Diversified Fund

• Balanced Portfolio

• Optimal Risky Portfolio

• Mixed Asset Fund

What is a contractual security that gives the right to buy or sell financial assets like stocks or bonds?

• Warrant

• Option

• Futures Contract

• Equity

What market operates outside organized stock or option exchanges, involving direct transactions?

• OTC (Over-the-Counter Market)

• Commodity Market

• Forex Market

• Futures Exchange

What is the capital contributed by shareholders, recorded as part of stockholders' equity in the balance sheet?

• Retained Earnings

• Paid-in Capital

• Shareholder Loan

• Equity Reserve

What is the amount of money the issuer promises to repay bondholders at the maturity date?

• Book Value

• Par Value of the Bond

• Market Price

• Redemption Yield

What is the secondary market trading place in the Philippines for fixed-income securities?

• Philippine Stock Exchange (PSE)

• Philippine Dealing Exchange (PDEx)

• Bangko Sentral ng Pilipinas

• Local Bond Market

What is the combination of a common stock and a stock put option called?

• Hedging Strategy

• Portfolio Insurance

• Risk Mitigation

• Equity Derivatives