Sample Quiz #3

Sample Quiz #3 - Finance 351: Financial Management...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
1 Finance 351: Financial Management Instructor: Shuming Liu Sample Quiz 3 1. Capital structure decisions refer to the: A) dividend yield of the firm's stock. B) blend of equity and debt used by the firm. C) capital gains available on the firm's stock. D) maturity date for the firm's securities. 2. The appropriate opportunity cost of capital is the return that investors give up on alternative investments with: A) the same risk. B) the risk-free return. C) the expected return on the S&P 500 index. D) the normal, common stock risk premium. 3. An investor receives a 15% total return by purchasing a stock for $40 and selling it after one year with a 5% capital gain. How much was received in dividend income during the year? A) $2.00 B) $2.20 C) $4.00 D) $6.00 4. When the overall market experiences a decline of 8%, an investor with a portfolio of aggressive stocks will probably experience: A) negative portfolio returns of less than 8%. B) negative portfolio returns of greater than 8%. C) positive portfolio returns of less than 8%. D) positive portfolio returns of greater than 8%. 5.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 4

Sample Quiz #3 - Finance 351: Financial Management...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online