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FINANCE REVISION 2.0

Total questions: 10

Worksheet time: 13mins

Name
Class
Date
1.
  1. Listed below are the advantages of FinTech EXCEPT 

a)
  1. Customized service 

b)

Security risk

c)

Convenience

d)

Faster process

2.

Which of the following statements regarding NPV is true? 

a)

An investment should be accepted if, and only if, the NPV equals the initial outlay

b)

An investment should be accepted  if, and only if, the NPV equals zero

c)

An investment should be accepted if the NPV is positive and rejected if it is negative. 

d)

An investment with greater cash inflows than cash outflows, regardless of when the cash flows occur , will always have a positive NPV and therefore should always be accepted.  

3.
  1. Types of financial fraud are : 

  1. Financial scams 

  1. Pishing 

  1. Money laundering 

  1. Spams 

a)

I,II and III

b)

I and II

c)

II and III

d)

all of the above

4.

Mimi has decided to invest RM1000 in a savings account that earns 10% interest. She invested for 10 years. How much would she earn at the end of year 10? 

a)

2765.45

b)

2498.06

c)

2593.74

d)

3625.65

5.
  1. Pillars of Islamic Contract EXCEPT

a)

Contracting Party

b)

Subject Matter

c)

Mode of Transfer

d)

Offer and Acceptance

6.

List and explain TWO (2) advantages of FinTech

4 lines
7.

Draw a diagram to show the operational process of Qard.

4 lines
8.

What is the present value of the following cash flow given the discount rate is 8%.

Year 1- RM800

Year 2- RM1100

Year 3- 0

Year 4- RM1530

4 lines
9.

What is WACC used for?

a)

To calculate a company's revenue

b)

To determine the cost of equity

c)

To evaluate a company's cost of capital

d)

To calculate a company's profit margin

10.

If a company's cost of equity is 10%, cost of debt is 5%, the market value of equity is $600,000, the market value of debt is $400,000, and the tax rate is 30%, what is the WACC?

a)

6.5%

b)

7.0%

c)

7.5%

d)

8.0%