BSNS114 Theory Exam with Questions and 100% Correct Answers
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Course
BSNS114
Institution
BSNS114
working capital management, capital budgeting, and choice of debt and equity mixed in
the capital structure. - Answer what three decisions are typically made by a financial
manager
mixture of long term debt and equity a firm use - Answer capital structure refers to
rise, fall - Answer interest ...
BSNS114 Theory Exam with Questions and
100% Correct Answers
working capital management, capital budgeting, and choice of debt and equity mixed in
the capital structure. - Answer what three decisions are typically made by a financial
manager
mixture of long term debt and equity a firm use - Answer capital structure refers to
rise, fall - Answer interest rates affect bond prices. If interests rates ______, bond prices
will ______
long, short - Answer ___________ term bonds, have greater interest rate risk than
_______ term bonds
Lower, Higher - Answer ________ coupon rate bonds have higher interest rate risk than
________ coupon rate bonds.
warehouse fire, bad publicity about a company - Answer examples of unsystematic risk
spreading your investment across many assets will normally eliminate some risk -
Answer the principle of diversification is
cost of equity and its after tax cost of debt - Answer weighted average cost of capital is
defined as the weighted average of a firms
the reserve bank of New Zealand unexpectedly increased the shirt term interested rate.
Oil producing countries agree to reduce production of oil and push oil prices up. -
Answer factors that cause systematic risk are
based on historical data, there is a reward for bearing risk - Answer what is true about
risk and return
a share is a potentially long lived investment but a standard bond usually expires at a
fixed date - Answer one difference between shares and bonds
investment grade bonds have a lower default risk premium than speculative grade
bonds - Answer size of default risk premium regarding to different grade bonds
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