6/6/2021 Online Quiz Exam

Online Quiz Exam Total points 89/100

Subject: Financial Management

Quiz Exam no:01 (New phase)
Time: 8.A.M - 9.A.M (1 hour )
Date: 6th June 2021
Prepared by: Gayan Abeyrathna, Department of Accountancy, Advanced Technological
Institute, Kegalle

Enter your details 0 of 0 points

If you have entered wrong details intentionally or unintentionally, you will lose your marks

Full Time / Part Time *

Full Time

Select your registered year *

2017

Final four digits of your registration number (Example: If your registration number is
"KEG/AC/2020/F/0001" you should insert "0001" *

0099
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Select your ATI *

Rathnapura

Section 01 : Select the Best matching Answer/s 38 of 38 points

Note: There may be 1 or more correct answers. If you tick all the points , you may receive full marks.
(Some cases 1 correct point & some cases more than 1)

Which of the following statement/s is/are correct about Agency relationship 6/6

Principal hires an agent to represent their interest

Stockholders (principals) hire managers (agents) to run the company

There is not any agency cost

Conflict of interest between principal and agent

Granting short-term and medium-term loans and accepting time and demand deposits are 5/5
belongs to ______________

Investment Companies

Investment Bankers

Pension Funds
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Commercial Banks

Which of the followings are functions belongs to the finance manager? *All the correct 6/6
answers should be marked

Cash raised from investors

Cash invested in firm

Cash generated by operations

Conducting Media conferences

Services after sales

Cash returned to investors

Financial system consists _______ , _______ , _______ & __________ *Key 6/6
matching concepts should be marked

Financial institutions

Financial instruments

Financial infrastructure

Audit firms

Financial markets

Researching Agencies

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6/6/2021 Online Quiz Exam

Treasury Bill Market is a ____________ 4/4

Money market

Capital Market

Decisions on long-term investments or projects are ____________________ 5/5

Capital structure decisions

Working capital management Decisions

Capital Budgeting DeCisions

All above three answers are matched to fill this space

What is the main goal of finance Management? 6/6

avoid financial distress and bankruptcy

beat the competition

maximize sales or market share

maximize the current value per share of the existing stock

maintain steady earnings growth

Section 02 : Are you agree with following statements? 30 of 30 points

Select Agree/ Disagree

The goal of Financial Management is earning more profits 5/5

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6/6/2021 Online Quiz Exam

Agree

Disagree

Payment and settlement systems enable the transfer of money in the accounts of 5/5
financial institutions to settle financial obligations between individuals and institutions.

Agree

Disagree

Negotiated markets - A type of secondary market exchange in which the prices of each 5/5
security are bargained out between buyers and sellers.

Agree

Disagree

Main objective of securities and exchange commission is to create and maintain a market 5/5
in which securities can be issued and traded in an orderly and fair manner

Agree

Disagree

Money market is the Market for the long term securities having maturities greater than 5/5
one year.

A
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6/6/2021 Online Quiz Exam
Agree

Disagree

Seasonal Equity Offering (SEO) is simply selling more stocks by a firm already publicly 5/5
traded

Agree

Disagree

Section 03: Write down correct short answers 21 of 32 points

Spellings should be 100% correct

If the kRF = 7%, RPM= 6%, and the firm‟s beta is 1.2, what is the cost of common equity 5/5
based upon the CAPM? (*Two decimals required)

14.2%

Total return of a share is 14%. If the dividend yield of this case is 6% and discounted factor 0/5
is 12%, what is the capital gain yield?

Correct answers

8%

0.08

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Market price of a preference share of XYZ company is Rs:80 and dividend is paid Rs:10 per 5/5
share. What is the cost of preference share capital? (*Three decimals required)

12.5%

If discount factor is 10%, what is the present value of these cash flows? (*Two decimals 5/5
required, Just enter the value, Don't put currency symbol)

248.69

What is the value of an ordinary share If a firm is expected to pay dividends of Rs:10 per 6/6
year to infinity and the rate of return required on a share of this risk class is 12% ? (*Two
decimals required, Just enter the value, Don't put currency symbol)

83.33

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(*Two decimals required, Just enter the value, Don't put currency symbol) 0/6

20

Correct answer

20.00

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