Internal rate of Return Quiz Questions and Answers PDF - 45

MCQ 221: A modified internal rate of return is considered as present value of costs and is equal to

1. p.v of hurdle rate
2. fv of hurdle rate
3. p.v of terminal value
4. fv of terminal value

MCQ 222: In expected rate of return for constant growth, an expected yield on capital must be

1. equal to zero
2. greater than expected growth rate
3. less than expected growth rate
4. equal to expected growth rate

MCQ 223: The price per ratio is divided by cash flow per share ratio, is used for calculating

1. dividend to stock ratio
2. sales to growth ratio
3. cash flow to price ratio
4. price to cash flow ratio

MCQ 224: A high portfolio return is subtracted from low portfolio return to calculate

1. HML portfolio
2. R portfolio
3. subtracted portfolio
4. ML portfolio

MCQ 225: The current option is $800 and the current value of stock in portfolio is $1900 then the present value of portfolio would be

1. −$1100
2. 2700
3. 1100
4. −$2700