Top Corporate Finance Quizzes & Trivia

Corporate finance is a particular area finance which focuses on the sources of funding and capital for a corporation. Corporate finance allows managers to increase the value of their particular firm for their shareholders while also allocating better financial resources through new tools and analyses.

This particular industry is something that most people know little about. And yet corporate finance can bring with it a great deal of professional success. Do you know what jobs are available for someone who has a degree in corporate finance? Do you know how a company can better improve their profitability? If you love the ins and outs of the financial sector, prove it by completing one of our many quizzes today.

Corporate Finance Questions and Answers

Stadford, Inc. is financed with 40 percent debt and 60 percent equity. This mixture of debt and equity is referred to as the firm's:

capital structure.

capital budget.

asset allocation.

working capital.

risk structure.

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Corporate Finance Homework 1

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The potential conflict of interest between a firm's owners and its managers is referred to as which type of conflict?

Agency

Structure

Territorial

Organizational

Formation

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Corporate Finance Homework 1

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The Say on Pay bill requires corporations to do which one of the following?

Give the firm's creditors a binding say on executive pay

Give shareholders a nonbinding vote on executive pay

Give shareholders a binding vote on executive pay

Give the chairman of the board the final say on executive pay

Give the firm's creditors a nonbinding say on executive pay

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Corporate Finance Homework 1

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What is the principal amount of a bond that is repaid at the end of the loan term called?

Coupon

Market price

Accrued price

Dirty price

Face value

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Corporate Finance Homework 6

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The annual interest divided by the face value of a bond is referred to as the:

market rate.

call rate.

coupon rate.

current yield.

yield-to-maturity.

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Corporate Finance Homework 6

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On which one of the following dates is the principal amount of a bond repaid?

Coupon date

Issue date

Discount date

Maturity date

Face date

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Corporate Finance Homework 6

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Discounted cash flow valuation is the process of discounting an investment's:

assets.

future profits.

liabilities.

costs.

future cash flows.

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Corporate Finance Homework 8

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The payback period is the length of time it takes an investment to generate sufficient cash flows to enable the project to:

produce a positive annual cash flow.

produce a positive cash flow from assets.

offset its fixed expenses.

offset its total expenses.

recoup its initial cost.

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Corporate Finance Homework 8

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Which one of the following defines the internal rate of return for a project?

Discount rate that creates a zero cash flow from assets

Discount rate which results in a zero net present value for the project

Discount rate which results in a net present value equal to the project's initial cost

Rate of return required by the project's investors

The project's current market rate of return

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Corporate Finance Homework 8

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Katie owns 100 shares of ABC stock. Which one of the following terms is used to refer to the return that Katie and the other shareholders require on their investment in ABC?

Weighted average cost of capital

Pure play cost

Cost of equity

Subjective cost

Cost of debt

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Corporate Finance Homework 12

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Lester lent money to The Corner Store by purchasing bonds issued by the store. The rate of return that he and the other lenders require is referred to as the:

pure play cost.

cost of debt.

weighted average cost of capital.

subjective cost.

cost of equity.

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Corporate Finance Homework 12

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The weighted average cost of capital is defined as the weighted average of a firm's:

return on its investments.

cost of equity and its aftertax cost of debt.

pretax cost of debt and equity securities.

bond coupon rates.

dividend and capital gains yields.

Corporate finance question from

Corporate Finance Homework 12

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