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Finance and Investment Quiz

Authored by Hardeep Singh

Financial Education

University

Used 3+ times

Finance and Investment Quiz
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10 questions

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1.

MULTIPLE CHOICE QUESTION

20 sec • 20 pts

What is an internal source of finance?

Bank loan

Selling company shares

Retained profit

Crowdfunding

2.

MULTIPLE CHOICE QUESTION

20 sec • 20 pts

Which of the following is a short-term external source of finance?

Venture capital

Bank overdraft

Preference shares

Retained earnings

3.

MULTIPLE CHOICE QUESTION

20 sec • 20 pts

What does WACC stand for?

Weighted Average Corporate Capital

Working Asset Cost Calculation

Weighted Average Cost of Capital

Work Allocation Capital Cost

4.

MULTIPLE CHOICE QUESTION

20 sec • 20 pts

What is the main feature of a preference share?

Higher risk than ordinary shares

Voting rights

Fixed dividends

No dividend ever paid

5.

MULTIPLE CHOICE QUESTION

20 sec • 20 pts

What is the purpose of a rights issue?

To sell company property

To raise equity from existing shareholders

To reduce share prices

To raise debt from banks

6.

MULTIPLE CHOICE QUESTION

20 sec • 20 pts

What is the formula to calculate the cost of equity using the Dividend Growth Model?

Ke = D1/P0 + g

Ke = P0/D1 + g

Ke = D1 – P0 + g

Ke = D1 x g x P0

7.

MULTIPLE CHOICE QUESTION

20 sec • 20 pts

Which source of finance is considered 'risk-free'?

Retained earnings

Ordinary shares

Bank overdraft

None – all carry some level of risk

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