Financial Management MCQs (BBA Finance) From Textbook

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Financial Management Exam MCQs – Practice Test 4 (Chapter 4)

Cash Flow Estimation and Risk Analysis Notes Questions with Answers PDF Download – Test 4

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Cash Flow Estimation & Risk Analysis MCQs – Practice Test 4 PDF Download

MCQ: 16

The rate of return which is required to satisfy stockholders and debt holders is classified as

  1. weighted average cost of interest
  2. weighted average cost of capital
  3. weighted average salvage value
  4. mean cost of capital
MCQ: 17

The net investment in operating capital is $7000 and the net operating profit after taxes is $11,000 then the free cash flow will be

  1. −$18000
  2. 18000
  3. −$4000
  4. 4000
MCQ: 18

The free cash flow is $17000 and the net investment in operating capital is $10000 then the net operating profit after taxes would be

  1. 7000
  2. 27000
  3. −$27000
  4. −$7000
MCQ: 19

An investment outlay cash flow is $2000, an operating cash flow is $1500 and the salvage cash flow is $3000 then the free cash flow would be

  1. 500
  2. 2500
  3. 0.065
  4. 6500
MCQ: 20

The free cash flow is $15000 and the net investment in operating capital is $9000 then the net operating profit after taxes will be

  1. 24000
  2. 6000
  3. −$6000
  4. −$24000

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