100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
MBA6010 Managerial Finance (SU) Midterms Qns & And 2025. $14.49
Add to cart
Quickly navigate to
Preview
  2.  
  3. South University
  4.  
  5. Business Management

Exam (elaborations)

MBA6010 Managerial Finance (SU) Midterms Qns & And 2025.
 0 purchase

MBA6010 Managerial Finance (SU) Midterms Qns & And 2025.MBA6010 Managerial Finance (SU) Midterms Qns & And 2025.MBA6010 Managerial Finance (SU) Midterms Qns & And 2025.

Preview 4 out of 37  pages

Document information

  • January 8, 2025
  • 37
  • 2024/2025
  • Exam (elaborations)
  • Unknown

Subjects

  • mba6010 managerial finance su midterms qns and

Written for

All documents for this subject (20)

Seller

avatar-seller
Bankart

Reviews received

Content preview

MBA6010

Managerial Finance

Midterms (Qns & Ans)

2025




1. Which of the following best describes the concept of "net
present value" (NPV)?
- A) The total revenue generated by a project
- B) The difference between the present value of cash inflows
and outflows
- C) The interest rate at which a project's NPV is zero
- D) The total cost of a project
- ANS: B) The difference between the present value of cash
inflows and outflows
©2024/2025

, - Rationale: NPV measures the difference between the
present value of cash inflows and outflows, helping to assess the
profitability of a project.


2. What is the primary purpose of the capital asset pricing model
(CAPM)?
- A) To determine the optimal capital structure
- B) To calculate the expected return on an investment based on
its risk
- C) To forecast future market trends
- D) To evaluate the effectiveness of marketing strategies
- ANS: B) To calculate the expected return on an investment
based on its risk
- Rationale: CAPM is used to determine the expected return
on an investment by considering its risk relative to the market.


3. Which of the following is a key characteristic of preferred
stock?
- A) Voting rights
- B) Fixed dividend payments
- C) High growth potential
- D) Variable interest rates
- ANS: B) Fixed dividend payments
©2024/2025

, - Rationale: Preferred stock typically offers fixed dividend
payments and has priority over common stock in dividend
distribution.


4. What is the primary difference between debt and equity
financing?
- A) Debt financing involves issuing shares, while equity
financing involves borrowing money
- B) Debt financing requires repayment with interest, while
equity financing does not
- C) Debt financing is riskier for investors, while equity
financing is riskier for the company
- D) Debt financing is only available to large corporations,
while equity financing is available to all businesses
- ANS: B) Debt financing requires repayment with interest,
while equity financing does not
- Rationale: Debt financing involves borrowing money that
must be repaid with interest, while equity financing involves
raising capital by issuing shares without the obligation to repay.


5. Which of the following best describes the concept of
"working capital management"?
- A) The process of managing long-term investments
- B) The management of a company's short-term assets and
liabilities
©2024/2025

, - C) The calculation of a company's net income
- D) The analysis of a company's market share
- ANS: B) The management of a company's short-term assets
and liabilities
- Rationale: Working capital management involves managing
a company's short-term assets and liabilities to ensure liquidity
and operational efficiency.


Fill-in-the-Blank Questions
6. The __________ is the rate of return required to make a
project or investment worthwhile.
- ANS: discount rate
- Rationale: The discount rate is used to determine the
present value of future cash flows and assess the viability of a
project or investment.


7. A __________ is a financial statement that shows a
company's financial position at a specific point in time.
- ANS: balance sheet
- Rationale: A balance sheet provides a snapshot of a
company's financial position, including its assets, liabilities, and
equity.



©2024/2025

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller Bankart. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $14.49. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

71241 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 15 years now

Start selling

Recently viewed by you

Exam (elaborations) ·

(0)

Frances Guide questions and answers already passed 2024

Exam (elaborations) ·

(0)

MPTC Police Academy Review Exam with complete solutions
$14.49
  • (0)
Add to cart
Added