Binomial Approach Quiz Questions and Answers PDF - 61

MCQ 301: The current option is $700 and the current value of stock in portfolio is $1400 then the present value of portfolio will be

1. −$700
2. 2100
3. 700
4. 0.02

MCQ 302: The payback period in which an expected cash flows are discounted with the help of project cost of capital is classified as

1. discounted payback period
2. discounted rate of return
3. discounted cash flows
4. discounted project cost

MCQ 303: The bonds issued to individuals by corporations are classified as

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

MCQ 304: The value of stock is $300 and the preferred dividend is $60 then the required rate of return would be

1. 18000
2. 0.2
3. 20
4. 5

MCQ 305: An interest rate is 5%, the number of period are 3, and the present value is $100, then the future value will be

1. 115.76
2. 105
3. 110.25
4. 113.56