<![CDATA[MGT201 Quiz 1 Solution and Discussion]]>Re: MGT201 Quiz 1 Solution and Discussion

]]>https://community.secnto.com//topic/2077/mgt201-quiz-1-solution-and-discussionRSS for NodeMon, 08 Jun 2026 19:22:29 GMTWed, 18 Nov 2020 09:14:09 GMT60<![CDATA[Reply to MGT201 Quiz 1 Solution and Discussion on Tue, 01 Dec 2020 14:54:07 GMT]]>@zareen said in MGT201 Quiz 1 Solution and Discussion:

Which of the following document/s is/are used to prepare a financial plan?

A financial plan documents an individual’s long-term financial goals and … The following steps in creating a financial plan may, of course, … You can’t create a financial plan without knowing where your money is … Don’t overlook cash withdrawals that may be used on sundries from shampoo to sodas.

]]>https://community.secnto.com//post/6163https://community.secnto.com//post/6163Tue, 01 Dec 2020 14:54:07 GMT<![CDATA[Reply to MGT201 Quiz 1 Solution and Discussion on Tue, 01 Dec 2020 14:53:58 GMT]]>Which of the following document/s is/are used to prepare a financial plan?

]]>https://community.secnto.com//post/6162https://community.secnto.com//post/6162Tue, 01 Dec 2020 14:53:58 GMT<![CDATA[Reply to MGT201 Quiz 1 Solution and Discussion on Tue, 01 Dec 2020 14:53:47 GMT]]>MGT201 vuzs.info Question # 15 of 15 ( Start time: 11:11:06 PM ) Total M - 1
Effective interest rate is different from nominal rate of interest because:
Select correct option:

Nominal interest rate ignores compounding
Nominal interest rate includes frequency of compounding (Correct)
Periodic interest rate ignores the effect of inflation
All of the given options

]]>https://community.secnto.com//post/6161https://community.secnto.com//post/6161Tue, 01 Dec 2020 14:53:47 GMT<![CDATA[Reply to MGT201 Quiz 1 Solution and Discussion on Tue, 01 Dec 2020 14:53:39 GMT]]>______ are also known as Spontaneous Financing.
Select correct option:

Current liabilities
Current assets (Correct)
Fixed assets
Long-term liabilities

]]>https://community.secnto.com//post/6160https://community.secnto.com//post/6160Tue, 01 Dec 2020 14:53:39 GMT<![CDATA[Reply to MGT201 Quiz 1 Solution and Discussion on Tue, 01 Dec 2020 14:53:34 GMT]]>What is the present value of Rs.1,000 to be paid at the end of 5 years if the correct risk adjusted interest rate is 8%?
Select correct option:

Rs.714
Rs.1,462
Rs.322.69
Rs.401.98

]]>https://community.secnto.com//post/6159https://community.secnto.com//post/6159Tue, 01 Dec 2020 14:53:34 GMT<![CDATA[Reply to MGT201 Quiz 1 Solution and Discussion on Tue, 01 Dec 2020 14:53:27 GMT]]>What is the additional amount a borrower must pay to lender to compensate for assuming the risk associated with non-payment?
Select correct option:

Default risk premium
Sovereign Risk Premium (Correct)
Market risk premium
Maturity risk premium

]]>https://community.secnto.com//post/6158https://community.secnto.com//post/6158Tue, 01 Dec 2020 14:53:27 GMT<![CDATA[Reply to MGT201 Quiz 1 Solution and Discussion on Tue, 01 Dec 2020 14:53:17 GMT]]>What is the most important criteria in capital budgeting?
Select correct option:

Return on investment
Profitability index (Correct)
Net present value
Pay back period

]]>https://community.secnto.com//post/6157https://community.secnto.com//post/6157Tue, 01 Dec 2020 14:53:17 GMT<![CDATA[Reply to MGT201 Quiz 1 Solution and Discussion on Tue, 01 Dec 2020 14:53:09 GMT]]>What type of long-term financing most likely has the following features: 1) it has an infinite life, 2) it pays dividends, and 3) its cash flows are expected to be a constant annuity stream?
Select correct option:

Long-term debt
Preferred stock
Common stock
None of the given options

]]>https://community.secnto.com//post/6156https://community.secnto.com//post/6156Tue, 01 Dec 2020 14:53:09 GMT<![CDATA[Reply to MGT201 Quiz 1 Solution and Discussion on Tue, 01 Dec 2020 14:52:56 GMT]]>Which of the following is/are the characteristic(s) of Perpetuity?
Select correct option:

It is an annuity
It has no definite end (Correct)
It is a constant stream of identical cash flows
All of the given options

]]>https://community.secnto.com//post/6155https://community.secnto.com//post/6155Tue, 01 Dec 2020 14:52:56 GMT<![CDATA[Reply to MGT201 Quiz 1 Solution and Discussion on Tue, 01 Dec 2020 14:52:50 GMT]]>Which of the following allows to graphically depicting the timing of the cash flows as well as their nature as either inflows or outflows?
Select correct option:

Cash flow diagram
Cash budget
Cash flow statement
None of the given options (Correct)

]]>https://community.secnto.com//post/6154https://community.secnto.com//post/6154Tue, 01 Dec 2020 14:52:50 GMT<![CDATA[Reply to MGT201 Quiz 1 Solution and Discussion on Tue, 01 Dec 2020 14:52:44 GMT]]>Discounted cash flow methods provide a more objective basis for evaluating and selecting an investment project. These methods take into account:
Select correct option:

Magnitude of expected cash flows
Timing of expected cash flows
Both timing and magnitude of cash flows
None of the given options

]]>https://community.secnto.com//post/6153https://community.secnto.com//post/6153Tue, 01 Dec 2020 14:52:44 GMT<![CDATA[Reply to MGT201 Quiz 1 Solution and Discussion on Tue, 01 Dec 2020 14:52:36 GMT]]>Discounted cash flow methods provide a more objective basis for evaluating and selecting an investment project. These methods take into account:
Select correct option:

Magnitude of expected cash flows
Timing of expected cash flows
Both timing and magnitude of cash flows
None of the given options

]]>https://community.secnto.com//post/6152https://community.secnto.com//post/6152Tue, 01 Dec 2020 14:52:36 GMT<![CDATA[Reply to MGT201 Quiz 1 Solution and Discussion on Tue, 01 Dec 2020 14:52:30 GMT]]>_______ is equal to (common shareholders’ equity/common shares outstanding).
Select correct option:

Book value per share
Liquidation value per share (Correct)
Market value per share
None of the above

]]>https://community.secnto.com//post/6151https://community.secnto.com//post/6151Tue, 01 Dec 2020 14:52:30 GMT<![CDATA[Reply to MGT201 Quiz 1 Solution and Discussion on Tue, 01 Dec 2020 14:52:23 GMT]]>The logic behind _______ is that instead of looking at net cash flows you look at cash inflows and outflows separately for each point in time.
Select correct option:

IRR
MIRR (Correct)
PV
NPV

]]>https://community.secnto.com//post/6150https://community.secnto.com//post/6150Tue, 01 Dec 2020 14:52:23 GMT<![CDATA[Reply to MGT201 Quiz 1 Solution and Discussion on Tue, 01 Dec 2020 14:52:16 GMT]]>What is the present value of Rs.8,000 to be paid at the end of three years if interest rate is 11%?
Select correct option:

Rs.6,015
Rs.4,872
Rs.6,725
Rs.1,842
6:59 PM

]]>https://community.secnto.com//post/6149https://community.secnto.com//post/6149Tue, 01 Dec 2020 14:52:16 GMT<![CDATA[Reply to MGT201 Quiz 1 Solution and Discussion on Tue, 01 Dec 2020 14:52:09 GMT]]>Which of the following is FALSE about Perpetuity?
Select correct option:
It is a series of cash flows
Cash flows occur for a specific time period
Its cash flows are identical (Correct)
None of the given options

]]>https://community.secnto.com//post/6148https://community.secnto.com//post/6148Tue, 01 Dec 2020 14:52:09 GMT<![CDATA[Reply to MGT201 Quiz 1 Solution and Discussion on Tue, 01 Dec 2020 14:52:04 GMT]]>Which if the following refers to capital budgeting?
Select correct option:
Investment in long-term liabilities
Investment in fixed assets (Correct)
Investment in current assets
Investment in short-term liabilities

]]>https://community.secnto.com//post/6147https://community.secnto.com//post/6147Tue, 01 Dec 2020 14:52:04 GMT<![CDATA[Reply to MGT201 Quiz 1 Solution and Discussion on Tue, 01 Dec 2020 14:51:56 GMT]]>If Net Present Value technique is used, what is the minimum acceptance criterion for a project?
Select correct option:
NPV
NPV=0
NPV>0
NPV

]]>https://community.secnto.com//post/6146https://community.secnto.com//post/6146Tue, 01 Dec 2020 14:51:56 GMT<![CDATA[Reply to MGT201 Quiz 1 Solution and Discussion on Tue, 01 Dec 2020 14:51:50 GMT]]>When a bond will sell at a discount?
Select correct option:
The coupon rate is greater than the current yield and the current yield is greater than yield to maturity
The coupon rate is greater than yield to maturity
The coupon rate is less than the current yield and the current yield is greater than the yield to maturity
The coupon rate is less than the current yield and the current yield is less than yield to maturity (Correct)

]]>https://community.secnto.com//post/6145https://community.secnto.com//post/6145Tue, 01 Dec 2020 14:51:50 GMT<![CDATA[Reply to MGT201 Quiz 1 Solution and Discussion on Tue, 01 Dec 2020 14:51:43 GMT]]>The statement of cash flows reports a firm’s cash flows segregated into which of the following categorical order?
Select correct option:
Operating, investing, and financing
Investing, operating, and financing (Correct)
Financing, operating and investing
Financing, investing, and operating

]]>https://community.secnto.com//post/6144https://community.secnto.com//post/6144Tue, 01 Dec 2020 14:51:43 GMT<![CDATA[Reply to MGT201 Quiz 1 Solution and Discussion on Tue, 01 Dec 2020 14:51:37 GMT]]>An annuity due is always worth ___ a comparable annuity.
Select correct option:
Less than
More than (Correct)
Equal to
Can not be found from the given information

]]>https://community.secnto.com//post/6143https://community.secnto.com//post/6143Tue, 01 Dec 2020 14:51:37 GMT<![CDATA[Reply to MGT201 Quiz 1 Solution and Discussion on Tue, 01 Dec 2020 14:51:32 GMT]]>Which if the following refers to capital budgeting?
Select correct option:
Investment in long-term liabilities (Correct)
Investment in fixed assets
Investment in current assets
Investment in short-term liabilities

]]>https://community.secnto.com//post/6142https://community.secnto.com//post/6142Tue, 01 Dec 2020 14:51:32 GMT<![CDATA[Reply to MGT201 Quiz 1 Solution and Discussion on Tue, 01 Dec 2020 14:51:23 GMT]]>What is the present value of Rs. 3,500,000 to be paid at the end of 50 years if the correct risk adjusted interest rate is 18%?
Select correct option:
Rs.105,000
Rs.1,500,000
Rs.3975,000
Rs. 350,000

]]>https://community.secnto.com//post/6141https://community.secnto.com//post/6141Tue, 01 Dec 2020 14:51:23 GMT<![CDATA[Reply to MGT201 Quiz 1 Solution and Discussion on Tue, 01 Dec 2020 14:51:17 GMT]]>Which of the following term may be defined as incidental cash flows that arise because of the effect of new project on the running business?
Select correct option:
Sunk cost
Opportunity cost
Externalities (Correct)
Contingencies

]]>https://community.secnto.com//post/6140https://community.secnto.com//post/6140Tue, 01 Dec 2020 14:51:17 GMT