BFN303 tma answers

BFN303 Tma Solutions 1. All the following are modern approaches to capital budgeting except ____________ —>> Profitability Index Net present value Internal rate of return Accounting Rate of Return 2. The combination of two firms which are in the same …

All the following are sources of short-term finance except _____________________ Bank overdraft Borrowing from relations Trade credits —>> Equity funds

Treasury management include management of the following except_______________ Mortgage —>> Fictitious Asset Marketable securities Receivables

Which of the following is not a Principal Functions of management? —>> Planning decision Dividend function Investment decision Finance function

Which of the following is not an assumption of Modgilliani and Miller Perfect market No retained earning No corporate taxes —>> Investors act irrationally

Dr. Araga bought a 15% irredeemable debenture for N1000 ex-interest. Compute the cost of debt. —>> N150 N45 N15 N115

Which of these ratios do not measure profitability? Net profit margin Return on assets ratio Gross profit margin —>> Acid Test ratio

The CBN was established by the Central Bank of Nigeria Act of ….. 1959 1957 —>> 1958 1956

All the following are modern approaches to capital budgeting except ____________ —>> Profitability Index Net present value Internal rate of return Accounting Rate of Return

The combination of two firms which are in the same industry but at different stages in the production and sale of products is called _______________. Conglomerate merger Horizontal Integration Subsidiary merger —>> Vertical integration

What is the rate of return that a firm must earn on its project investments to maintain its market value and attract funds? Average cost of capital Interest rate —>> Cost of capital Marginal cost of capital