BFN303: NOUN 2020 TMA 2 Questions And Answers (First Semester)

BFN303 TMA 2 QUESTIONS AND ANSWERS

Q1. _____ is the total period of converting raw materials into cash and returning the cash into raw materials.
Answer: Operating Cycle

Q2. All the following are Long term sources of finance except
Answer: Overdraft

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
Answer: 0.55

Q5. A dividend paid by the issue of additional company shares, rather than by cash.
Answer: scrip dividend 

Bfn 303

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?
Answer: 10%

Q7. Financial risk can be dealt with in any of the following except
Answer: Interpolation

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
Answer: N50billion

Q10. Which of the following is not a method of capital budgeting techniques in private sector?
Answer: Cost benefit Analysis



Source: Nounspy