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ANSWER ALL QUESTIONS

Answer ALL Questions. Choose Only ONE correct answer. (i) Which ratio is calculated to comment upon the short term paying capacity of a concern or the firm's ability to meet its current obligations? A. B. C. D. The current ratio The debt to equity ratio The price earnings ratio The dividend yield ratio [1 mark] (ii) If a company has insufficient working capital and tries to increase its sales, it can easily over-stretch its financial resources. This is called A. B. C. D. Overwhelming Overloading Overtrading Overriding [1 mark] (iii) Which method of capital budgeting does not use discounted cash flows? A. B. C. D. Profitability Index Payback Net Present Value Internal Rate of Return [1 mark] (iv) The value of a share is worth $ 340 today and is expected to reach $475 after 6 years. What is the expected rate of return? A. B. C. D. 3.73% 4.73% 5.73% 6.73% [2 marks]