| Fråga | Svar | 
        
        | börja lära sig |  |   a.) pay a fixed rate of interest c.) give the investor the option to convert the bond into a specified number of shares of common stock  |  |  | 
|  börja lära sig Payment of interest is required only when the earnings are available – in case of:  |  |  |  |  | 
| börja lära sig |  |   b.) are high-yield securities  |  |  | 
|  börja lära sig Payment of dividends is at the discretion of  |  |   b.) the board of Directors  |  |  | 
|  börja lära sig Securities are first issued through the ___primary__ market and then trade on the __secondary___ market  |  |   Securities are first issued through the ___primary__ market and then trade on the __secondary___ market  |  |  | 
|  börja lära sig Capital market instruments are:  |  |  |  |  | 
|  börja lära sig When the interest rate goes up:  |  |   the bond price always go down  |  |  | 
|  börja lära sig When calculating the Initial Investment in capital budgeting we should include:  |  |   a.) change in net working capital b.) installation cost of new assets  |  |  | 
|  börja lära sig Increase in current assets mean:  |  |  |  |  | 
|  börja lära sig We should accept the project if its IRR is:  |  |   greater than the cost of capital  |  |  | 
|  börja lära sig Certainty Equivalents as a risk adjustment technique of capital budgeting assumes  |  |   ) considering only the part of estimated cash inflow (the part which is certain)  |  |  | 
|  börja lära sig The degree of financial leverage (DFL) measures:  |  |   ) the sensitivity of changes in EPS to changes in EBIT  |  |  | 
|  börja lära sig The times interest earned ratio (interest coverage ratio) is one of:  |  |  |  |  | 
|  börja lära sig The most expensive source of capital is:  |  |  |  |  | 
| börja lära sig |  |   a.) is dependent on the level of production (purchases and sales) c.) is unsecured  |  |  | 
|  börja lära sig A line of credit guaranteed to a borrower by a bank for a stated period of time is:  |  |   Revolving Credit Agreement  |  |  | 
|  börja lära sig The greater the firm’s net working capital:  |  |   a. the lower the risk c. the lower the profitability  |  |  | 
|  börja lära sig Cash flow for investment activities include  |  |   a) change in gross fixed assets c.) changes in business interests  |  |  | 
|  börja lära sig When the amount of financing is growing, the WEighted Marginal Cost of Capital:  |  |  |  |  | 
|  börja lära sig Short term market securities take place  |  |  |  |  | 
|  börja lära sig Security market line shows the realation between expected return on investment and itsb  |  |  |  |  | 
|  börja lära sig identifying CFs corporate finance relevant to capital budget decision we should:  |  |   b. include opportunity cost  |  |  | 
|  börja lära sig The time factor in the value of money is not taken into account in  |  |  |  |  | 
|  börja lära sig Information about the personnel expenses can be found in:  |  |  |  |  |