Telegram group: T.me/BBCNOUN
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MBF839
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1. Sinking fund is a fund, which is created out of fixed ________ each period to accumulate to a future sum after a specified period

	      interest

	      rate

	--->> payment

	      none of the above

2. Investment decision rules may be referred to as ________

	      earning

	--->> capital budgeting

	      profitability

	      appraisal

3. Bond is a long term debt instrument or ________

	--->> security

	      dividend

	      interest

	      liquidity

4. Only a __________ can have a positive dual price and the calculated price assumes that there is only a marginal increase or decrease in the availability of the scarce resource and that all other factors are held constraint.

	      Shadow prices

	--->> Scarce resource

	      Constraint A

	      Constraint B

5. The contribution lines are sometimes termed __________ lines

	--->> 180 – profit

	      Point X

	      Feasible region

	      Optimum solution

6. An annuity yields #100 per annum for 7years. How much does it cost if the current market rate of interest is 6%

	--->> 0.3349

	      0.4539

	      1.2317

	      6.0033

7. Assuring that the company will follow a constant policy of retaining 40 percent earning (ie payout of 60 percent) at 20 percent rate of return then its earning and dividend will grow perpetually at 8 percent (g =rb= 0.2x04). what would be the price of the

	--->> N200.00

	      N750.00

	      N2000.00

	      N684.50

8. The  _______ of a binding provides valuation guidance because it indicates to management the extra contribution they would gain from increasing one unit the amount of the scarce resources

	--->> Shadow prices

	      Dual prices

	      Dual formulation

	      Constraint binding

9. __________ do not carry an explicit rate of interest

	      Bond with maternity

	--->> Price discount bond

	      Perpetual Bonds

	      Valuation of preference shares

10. The main features of a bond or debenture are _________

	      face value

	      interest rate

	      multiple

	--->> all of the above