Home › Quizzes › Corporate Finance and Capital Structure

Corporate Finance and Capital Structure

This quiz will test your knowledge on Corporate Finance and Capital Structure. It covers topics such as capital budgeting, cost of capital, and dividend policy.

15 Questions Published
Play Quiz Practise this topic out loud

Questions

Question 1 Multiple Choice (Single Answer)

Which of the following is NOT a source of long-term financing?

  1. Debt
  2. Equity
  3. Retained Earnings
  4. Accounts Payable
Question 2 Multiple Choice (Single Answer)

The cost of capital is the:

  1. Rate of return required by investors
  2. Cost of debt
  3. Cost of equity
  4. All of the above
Question 3 Multiple Choice (Single Answer)

Which of the following is NOT a factor that affects the cost of debt?

  1. Interest rate
  2. Maturity
  3. Credit rating
  4. Inflation
Question 4 Multiple Choice (Single Answer)

Which of the following is NOT a factor that affects the cost of equity?

  1. Dividend payout ratio
  2. Growth rate
  3. Risk
  4. Taxes
Question 5 Multiple Choice (Single Answer)

Which of the following is NOT a type of capital budgeting technique?

  1. Net Present Value (NPV)
  2. Internal Rate of Return (IRR)
  3. Payback Period
  4. Return on Investment (ROI)
Question 6 Multiple Choice (Single Answer)

The NPV of a project is the:

  1. Present value of all future cash flows
  2. Difference between the present value of all future cash flows and the initial investment
  3. Internal rate of return
  4. Payback period
Question 7 Multiple Choice (Single Answer)

The IRR of a project is the:

  1. Discount rate that makes the NPV of the project equal to zero
  2. Rate of return that the project is expected to generate
  3. Payback period
  4. All of the above
Question 8 Multiple Choice (Single Answer)

The payback period of a project is the:

  1. Time it takes for the project to generate enough cash flow to cover the initial investment
  2. Difference between the present value of all future cash flows and the initial investment
  3. Internal rate of return
  4. All of the above
Question 9 Multiple Choice (Single Answer)

Which of the following is NOT a type of dividend policy?

  1. Stable dividend policy
  2. Growth dividend policy
  3. Liquidation dividend policy
  4. Stock dividend policy
Question 10 Multiple Choice (Single Answer)

A stable dividend policy is one in which the:

  1. Dividend payout ratio is constant
  2. Dividend per share is constant
  3. Both of the above
  4. None of the above
Question 11 Multiple Choice (Single Answer)

A growth dividend policy is one in which the:

  1. Dividend payout ratio is increasing
  2. Dividend per share is increasing
  3. Both of the above
  4. None of the above
Question 12 Multiple Choice (Single Answer)

Which of the following is NOT a factor that affects a company's dividend policy?

  1. Earnings per share
  2. Cash flow
  3. Debt-to-equity ratio
  4. Growth prospects
Question 13 Multiple Choice (Single Answer)

Which of the following is NOT a benefit of paying dividends?

  1. It can increase the stock price
  2. It can attract new investors
  3. It can reduce the cost of capital
  4. It can increase the risk of bankruptcy
Question 14 Multiple Choice (Single Answer)

Which of the following is NOT a disadvantage of paying dividends?

  1. It can reduce the amount of cash available for investment
  2. It can increase the cost of capital
  3. It can reduce the stock price
  4. It can increase the risk of bankruptcy
Question 15 Multiple Choice (Single Answer)

Which of the following is NOT a type of financial leverage?

  1. Debt-to-equity ratio
  2. Interest coverage ratio
  3. Times interest earned ratio
  4. Return on equity
← Back to Quizzes