1. Which form of market efficiency states that current prices fully reflect the historical sequence of prices?
A) Weak.
B) Semi-strong
C) Strong.
D) Flexible.
2. _________________ is a long term planning for financing proposed capital outlay.
A) Capital Budgeting.
B) Budgeting.
C) Cash Budget.
D) Sales Budget.
3. Initial outlay 50,000, life of the asset 5 yrs, estimated annual cash flow 12,500, IRR = ____________.
A) 5%
B) 6%
C) 8%
D) 10%
4. Which form of market efficiency states that current security prices fully reflect all information, both public and private?
A) Weak.
B) Semi-strong.
C) Strong.
D) Highly strong.
5. __________ of debt capital is a factor in favor of using more debt capital.
A) Tax advantage.
B) Debt equity norms.
C) Leverage effect.
D) Security of assets.