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Objective of Corporation Value Maximization MCQs PDF Download – Prep Test

MCQ 1: The federal government tax revenues if it exceeds the government spending then it is classified as:

  1. budget surplus
  2. budget deficit
  3. federal reserve
  4. federal budget

MCQ 2: The financial security which is tax exempted and issues by state governments to individuals is classified as:

  1. U.S treasury bonds
  2. mortgages
  3. municipal bonds
  4. corporate bonds

MCQ 3: The rate of return which is asked by the investors is classified as:

  1. average cost of capital
  2. mean cost of capital
  3. weighted cost of capital
  4. weighted average cost of capital

MCQ 4: The risk of doing business in particular country and arises from foreign investments is classified as:

  1. country risk
  2. foreign risk
  3. proffered risk
  4. common risk

MCQ 5: The sales revenue $90,000, operating taxes $30,000 and operating capital $15,000 then value of free cash flows (in USD) will be:

  1. 45000
  2. 13500
  3. 65000
  4. 75000

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