Time Value of Money MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on Time Value of Money, a fundamental topic in the field of Financial Management and Financial Markets. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our Time Value of Money MCQs are designed to help you grasp the core concepts and excel in solving problems.

In this section, you'll find a wide range of Time Value of Money mcq questions that explore various aspects of Time Value of Money problems. Each MCQ is crafted to challenge your understanding of Time Value of Money principles, enabling you to refine your problem-solving techniques. Whether you're a student aiming to ace Financial Management and Financial Markets tests, a job seeker preparing for interviews, or someone simply interested in sharpening their skills, our Time Value of Money MCQs are your pathway to success in mastering this essential Financial Management and Financial Markets topic.

Note: Each of the following question comes with multiple answer choices. Select the most appropriate option and test your understanding of Time Value of Money. You can click on an option to test your knowledge before viewing the solution for a MCQ. Happy learning!

So, are you ready to put your Time Value of Money knowledge to the test? Let's get started with our carefully curated MCQs!

Time Value of Money MCQs | Page 9 of 9

Q81.
An annuity with an extended life is classified as
Discuss
Answer: (b).perpetuity
Q82.
The periodic rate if it is multiplied with per year number of compounding periods is called
Discuss
Answer: (d).nominal annual rate
Q83.
The net income and depreciation is $313,650,000 and common shares outstanding are 55,000,000 then cash flow per share would be
Discuss
Answer: (a).5.7
Q84.
The finance company providing loans at 3% with five compounding periods per year, the nominal annual rate is classified as
Discuss
Answer: (a).0.15
Q85.
The values of assets purchased or the liabilities recorded as recorded by bookkeepers are considered as
Discuss
Answer: (d).book values
Q86.
A stock which is hybrid and works as a cross between debt and common stock is considered as
Discuss
Answer: (d).preferred stock
Q87.
The paid dividends to common stockholders $67,600,000 and common shares outstanding = 55,000,000 then the dividend per share will be
Discuss
Answer: (a).1.229
Q88.
The procedure of finding the present values in time value of money is classified as
Discuss
Answer: (b).discounting
Q89.
In uneven cash flow, the 'IRR' is an abbreviation of an
Discuss
Answer: (a).internal rate of return
Q90.
A company who issues bonds or stocks in result raised funds which finally
Discuss
Answer: (c).increases cash
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