Project Analysis Quiz Questions and Answers PDF - 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