BFN303
Merger in which in which the two firms are in different stage of value chain is calledâ€|
Answer: vertical merger
Assuming profit after tax of NOUNPIc. is N1 Obillion and the return on capital employed is 20% ; what is the value of NOUN
Answer: n50billion
Assuming the money interest rate is 20% and the tax rate is 25% what will be the real interest rate
Answer: 0.15
All the following are medium term sources of finance except:
Answer: overdraft
Assuming the profit after tax of a company was N60million when after tax of return is 12%. What will be the value of the company?
Answer: n500miilion
Which of the following is not a modem method of capital budgeting techniques?
Answer: accounting rate of return
Dr Obéra bought a 12% redeemable debenture, redeemable at par in 10 yearsV time. The current market value of the debenture is N80, associated tax is 40%. What is the cost of the redeemable debenture?
Answer: 10%
Given that the money interest rate is 30% and the tax rate is 30% what will be the real interest rate
Answer: 0.21
The total period of converting raw materials into cash and returning the cash into raw material is known as..
Answer: operating cycle
Which of the following is not a method of capital budgeting techniques in private sector?
Answer: cost benefit analysis
A dividend paid by the issue of additional share to existing shareholder is known asâ€|.
Answer: script dividend
The reasons for going the route of mergers include all the following except;
Answer: job creation
Which of the following does not constitute working capital?
Answer: payables
All the following are longe term sources of finance except:
Answer: overdraft
Financial risk can be dealt with in any of the following except;
Answer: interpolation
The cost of alternative project forgone for the purpose of investing in the selected projects is known asâ€|
Answer: opportunity cost
Dividend paid by allocation of share is called
Answer: stock dividend
Which of the following is not an alternative to cash dividend?
Answer: offer for subsciption
All the following are investibility ratios except?
Answer: gearing ratio
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