BFN303 TMA 2 QUESTIONS AND ANSWERS
Answer: Operating Cycle
Q2. All the following are Long term sources of finance except
Q3. _____is the cost of alternative project forgone for the purpose of investing in the selected projects.
Answer: Opportunity Cost
Q4. Assuming the money interest rate is 20% and the tax rate is 25% the real interest rate will be
Q5. A dividend paid by the issue of additional company shares, rather than by cash.
Answer: scrip dividend
Q6. Dr. Obera bought a 12% redeemable debenture, redeemable at par in 10 years’ time. The current market value of the debenture is N80, associated tax is 40%. What is the cost of the redeemable debenture?
Q7. Financial risk can be dealt with in any of the following except
Q8. Combination of two firms in the same industry at different stages
Answer: Vertical Merger
Q9. Assuming Profit after Tax of NOUNPlc is N10billion and the return on capital employed is 20%; what is the value of NOUN
Q10. Which of the following is not a method of capital budgeting techniques in private sector?
Answer: Cost benefit Analysis