FIN622_Offline # 2

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Total marks: 10

 

Question 01

 

Fill in the blanks.                                                                (1x10)

 

 

1.      A cost that changes with the change in output level is Variable cost.

 

2.      The two types of cash flows connected to investment in shares are Dividends and Capital gains.

 

3.      The point at which the sum of variables and fixed costs are equal to total revenue is called Break even point.

 

4.      The cost of surrendering an existing benefit in favor of next best available benefit is Opportunity cost.

 

5.      Sunk Cost, which has been incurred in the past and Committed Cost i.e. Future cost are examples of Non- Relevant cost.

 

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6.      There arte two situations of capital rationing one is Current or Single Period CR and other are Multiple Period CR.

 

7.      Venture capital firms or individuals specialize in pooling funds from different sources. Also know as private equity. No physical collateral is required.

 

8.      Banks require Collateral or Security for granting loans.

 

 

9.      Economy-wide sources of risk that affects all the stocks being traded in market is known as Systematic risk.

 

10.  Relationship between Nominal and Real Interest Rates is known as Fisher Effect.

 

 

 

 

 

 

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