Project Analysis Quiz with Answers PDF Download – Test 37

MCQ 181: The situation in which the new business reduces an existing business of the firm is classified as:

1. non-cannibalization effect
2. cannibalization effect
3. external effect
4. internal effect

MCQ 182: In the cash flow estimation and risk analysis, the real rate will be equal to nominal rate if there is:

1. no inflation
2. high inflation
3. no transactions
4. no acceleration

MCQ 183: The protective covenant devised in the market to reduce event risk and to control debt cost is classified as:

1. super poison covenant
2. super poison put
3. super poison call
4. super poison redemption

MCQ 184: The formula such as, net income available for common stockholders divided by total assets is used to calculate:

1. return on total assets
2. return on total equity
3. return on debt
4. return on sales

MCQ 185: The bond risk premium is added in to bond yield to calculate:

1. cost of American option
2. cost of European option
3. cost of common stock
4. cost of preferred stock