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- orations Which of the following is/are a disadvantage of accounting rate of return (ARR)? (Select the correct answer from the options below the statements) (1) It does not consider the time value of money (2) It is relatively simple to use (3) It can be manipulated by managers (1) only (1) and (2) All of the above
- Which of the following statement(s) is/are true about Herts 8 Partners Lid's cost of capital? (Select the correct answer from the options below the statements) (1) The cost of capital is an indication of Herts & Partners Ltd's cost of borrowing (2) The cost of capital is Herts 6 Partners Ltd's cost of equity (3) The cost of capital gives an indication of the time value of money (1) only (1) and (2) (1) and (3) (2) and (3)
- Which of the following statement(s) is/are true? (Select the correct answer from the options below the statements) (1) Forward contracts are binding (2) Forward contracts are flexible and can be renegotiated or cancelled at any time before the date of settlement (3) Forward contracts are prone to counterparty risks (1) only (1) and (2) (1) and (3) (1), (2) and (3)
- What is an interest rate that rises and falls with market rates of interest called? Select the correct answer from the options listed below Floating rate Semi-fixed rate Stepped rate Freedom rate
- Which of the following statement(s) is/are true? (Select the correct answer from the options below the statements) (1) A mortgage is a form of long term loan that is secured on an asset.typically land and property (2) Amortgage is a form of equity and is attached to non-current assets; typically land and property (3) A mortgage may be for a long period: 20 years or more (1) and (3) (1) only (1) and (2) (2) and (3)