Business Finance Final Quiz

Student Quiz

body {
background-color: #f8f9fa;
}
.main-container {
display: flex;
justify-content: space-between;
}
.quiz-container {
max-width: 700px;
background: #fff;
padding: 30px;
border-radius: 10px;
box-shadow: 0 0 15px rgba(0, 0, 0, 0.1);
flex: 1;
margin-right: 20px;
}
.sidebar {
width: 300px;
}
.hidden {
display: none;
}
.form-check {
margin-bottom: 10px;
}
#timer {
font-size: 18px;
font-weight: bold;
color: red;
}

Student Quiz

Name:

Program:

Email:

const questions = [

{
text: “Suppose Dexter’s stock sells for $21, next year’s dividend is expected to be $1, Dexter’s expected ROE is 12%, and Dexter is expected to pay out 40% of its earnings. What is Dexter’s cost of equity?”,
options: [“12%”, “14.8%”, “9%”, “None of these”],
answer: “12%”
},
{
text: “Dexter’s interest rate on long-term debt is 8%. Suppose the risk premium is estimated to be 5%. Estimate Dexter’s cost of equity.”,
options: [“13%”, “14.8%”, “9%”, “None of these”],
answer: “13%”
},
{
text: “A company has $5 million in debt outstanding with a coupon rate of 12%. Currently, the yield to maturity (YTM) on these bonds is 14%. If the firm’s tax rate is 40%, what is the company’s after-tax cost of debt?”,
options: [“5.6%”, “8.4%”, “14.0%”, “None of these”],
answer: “8.4%”
},
{
text: “A company’s $100, 8% preferred is currently selling for $85. What is the company’s cost of preferred equity?”,
options: [“8.0%”, “9.4%”, “10.8%”, “None of these”],
answer: “9.4%”
},
{
text: “The expected dividend is $2.50 for a share of stock priced at $25. What is the cost of equity if the long-term growth in dividends is projected to be 8%?”,
options: [“15%”, “16%”, “18%”, “None of these”],
answer: “16%”
},
{
text: “Calculate the company’s after-tax cost of debt (given: 40% debt, 60% equity, bonds $849.54, YTM 12%, tax 40%).”,
options: [“15%”, “7.2%”, “18%”, “None of these”],
answer: “7.2%”
},
{
text: “Calculate the company’s cost of equity using the capital asset pricing model (CAPM) approach (beta 1.2, risk-free rate 10%, market risk premium 5%).”,
options: [“12%”, “16%”, “18%”, “None of these”],
answer: “16%”
},
{
text: “Calculate the company’s cost of equity using the dividend discount model (dividend = $2, price = $27, growth = 8%).”,
options: [“16%”, “7.2%”, “18%”, “None of these”],
answer: “16%”
},
{
text: “Calculate the company’s weighted average cost of capital (WACC) using the CAPM-based cost of equity.”,
options: [“16%”, “7.2%”, “12.48%”, “None of these”],
answer: “12.48%”
},
{
text: “The capital asset pricing model can be used to calculate a cost of equity and incorporates risk.”,
options: [“True”, “False”],
answer: “True”
},
{
text: “The CAPM is based on a comparison of the systematic risk of individual investments with the risks of ______.”,
options: [“All shares in the market”, “All shares in the international market”, “All bonds in the market”, “None of these”],
answer: “All shares in the market”
},
{
text: “The risk involved in holding securities (shares) divides into risk specific to the company (unsystematic) and risk due to variations in market activity (systematic).”,
options: [“True”, “False”],
answer: “True”
},
{
text: “Unsystematic or business risk can be _______, while systematic or market risk cannot.”,
options: [“diversified away”, “forward”, “hedge”, “None of these”],
answer: “diversified away”
},
{
text: “Beta factor is the measure of the unsystematic risk of a security relative to the market portfolio.”,
options: [“True”, “False”],
answer: “False”
},

{
text: “If a company’s current assets are $150,000 and current liabilities are $100,000, what is its current ratio?”,
options: [“1.0:1”, “1.5:1”, “2.0:1”, “2.5:1”],
answer: “1.5:1”
},
{
text: “A company has total liabilities of $400,000 and shareholders’ equity of $800,000. What is the debt-to-equity ratio?”,
options: [“0.25”, “0.33”, “0.50”, “1.00”],
answer: “0.50”
},
{
text: “Which of the following ratios measures how efficiently a firm uses its assets to generate sales?”,
options: [“Gross Profit Margin”, “Current Ratio”, “Total Asset Turnover”, “Return on Equity”],
answer: “Total Asset Turnover”
},
{
text: “Inventory = $40,000; Accounts Receivable = $50,000; Cash = $30,000; Current Liabilities = $100,000. What is the quick ratio?”,
options: [“1.2”, “0.8”, “1.0”, “0.9”],
answer: “0.8”
},
{
text: “Net Income is $60,000, and Average Shareholders’ Equity is $300,000. What is the Return on Equity (ROE)?”,
options: [“10%”, “15%”, “18%”, “20%”],
answer: “20%”
},
{
text: “Which of the following is a liquidity ratio?”,
options: [“Return on Assets”, “Current Ratio”, “Debt to Equity Ratio”, “Gross Profit Margin”],
answer: “Current Ratio”
},
{
text: “If EBIT is $120,000 and Interest Expense is $30,000, what is the interest coverage ratio?”,
options: [“3 times”, “4 times”, “5 times”, “6 times”],
answer: “4 times”
},
{
text: “Which ratio helps assess a company’s ability to collect receivables?”,
options: [“Inventory Turnover”, “Current Ratio”, “Accounts Receivable Turnover”, “Net Profit Margin”],
answer: “Accounts Receivable Turnover”
},
{
text: “A company has net income of $90,000 and net sales of $600,000. What is the net profit margin?”,
options: [“12%”, “15%”, “18%”, “20%”],
answer: “15%”
},
{
text: “Which of the following ratios measures the profitability of core business operations before interest and tax?”,
options: [“Gross Profit Margin”, “Net Profit Margin”, “Operating Profit Margin”, “Return on Assets”],
answer: “Operating Profit Margin”
},
{
text: “In vertical analysis of the income statement, each item is expressed as a percentage of:”,
options: [“Gross Profit”, “Net Sales”, “Total Expenses”, “Operating Income”],
answer: “Net Sales”
},
{
text: “A company’s income statement shows: Sales = $800,000, COGS = $500,000, Operating Expenses = $200,000. What is the percentage of COGS in vertical analysis?”,
options: [“60%”, “62.5%”, “65%”, “70%”],
answer: “62.5%”
},
{
text: “In vertical analysis of the balance sheet, Inventory = $100,000 and Total Assets = $1,000,000. What is the inventory percentage?”,
options: [“5%”, “8%”, “10%”, “12%”],
answer: “10%”
},
{
text: “Which of the following is NOT a benefit of vertical analysis?”,
options: [“Identifies trend over time”, “Facilitates intra-firm comparison”, “Shows relative size of each item”, “Standardizes financial statements”],
answer: “Identifies trend over time”
},
{
text: “In vertical analysis of income statement, if sales are $500,000 and gross profit is $150,000, what is the gross profit ratio?”,
options: [“25%”, “30%”, “35%”, “40%”],
answer: “30%”
},
{
text: “A company’s sales increased from $600,000 to $750,000 over one year. What is the percentage increase?”,
options: [“20%”, “22.5%”, “25%”, “27.5%”],
answer: “25%”
},
{
text: “Net profit was $100,000 last year and $80,000 this year. What is the percentage decrease?”,
options: [“15%”, “18%”, “20%”, “25%”],
answer: “20%”
},
{
text: “Which of the following best describes horizontal analysis?”,
options: [“Comparing one item across companies”, “Expressing items as % of total assets”, “Comparing financial data across time”, “Comparing different industries”],
answer: “Comparing financial data across time”
},
{
text: “Operating Expenses were $300,000 last year and $360,000 this year. What is the percentage change?”,
options: [“15%”, “18%”, “20%”, “25%”],
answer: “20%”
},
{
text: “Which of the following is a limitation of horizontal analysis?”,
options: [“Cannot be applied to cash flows”, “Ignores inflation effects”, “Doesn’t show trends”, “Can’t compare two companies”],
answer: “Ignores inflation effects”
},
{
text: “What is the expected return of an investment that has a 50% chance of earning 10% and a 50% chance of earning 20%?”,
options: [“10%”, “15%”, “20%”, “30%”],
answer: “15%”
},
{
text: “The standard deviation is used to measure:”,
options: [“Expected return”, “Diversification”, “Market value”, “Total risk”],
answer: “Total risk”
},
{
text: “An investment has the following returns over 3 years: 8%, 10%, and 12%. What is the average (mean) return?”,
options: [“9%”, “10%”, “11%”, “12%”],
answer: “10%”
},
{
text: “Which of the following assets is considered risk-free in theory?”,
options: [“Corporate Bonds”, “Common Stock”, “Treasury Bills”, “Mutual Funds”],
answer: “Treasury Bills”
},
{
text: “If two assets have a perfect positive correlation (ρ = +1), what will diversification do to the portfolio’s risk?”,
options: [“Eliminate risk”, “Increase risk”, “Have no effect”, “Reduce risk to zero”],
answer: “Have no effect”
},
{
text: “What is the correlation coefficient if two assets move in opposite directions always?”,
options: [“0”, “+1”, “-1”, “0.5”],
answer: “-1”
},
{
text: “Which value of correlation offers maximum diversification benefit?”,
options: [“+1”, “0”, “-1”, “+0.5”],
answer: “-1”
},
{
text: “A portfolio has 40% in Stock A (return = 10%) and 60% in Stock B (return = 12%). What is the portfolio return?”,
options: [“10.5%”, “11.2%”, “11.6%”, “12.0%”],
answer: “11.2%”
},
{
text: “Two assets have the following weights and standard deviations:nnAsset A: Weight = 0.5, σ = 10%nAsset B: Weight = 0.5, σ = 20%nCorrelation (ρ) = 0nnWhat is the portfolio standard deviation?”,
options: [“15%”, “11.18%”, “10%”, “12.5%”],
answer: “11.18%”
},
{
text: “The formula to calculate the variance of a two-asset portfolio includes all the following except:”,
options: [“Weights of each asset”, “Variance of each asset”, “Correlation coefficient”, “Dividend yield”],
answer: “Dividend yield”
}

// Add more questions if needed
];

let currentQuestionIndex = 0;
let selectedAnswers = [];
let timerInterval;
let timeLeft = 300;

function startQuiz() {
const name = document.getElementById(“name”).value.trim();
const program = document.getElementById(“program”).value.trim();
const email = document.getElementById(“email”).value.trim();

if (!name || !program || !email) {
alert(“Please enter all details.”);
return;
}

document.getElementById(“studentInfo”).classList.add(“hidden”);
document.getElementById(“quizSection”).classList.remove(“hidden”);
renderQuestion();
startTimer();
}

function renderQuestion() {
const container = document.getElementById(“questionContainer”);
container.innerHTML = “”;

const q = questions[currentQuestionIndex];
const questionDiv = document.createElement(“div”);

const label = document.createElement(“label”);
label.classList.add(“form-label”);
label.innerText = `${currentQuestionIndex + 1}. ${q.text}`;
questionDiv.appendChild(label);

q.options.forEach(option => {
const div = document.createElement(“div”);
div.classList.add(“form-check”);

const input = document.createElement(“input”);
input.classList.add(“form-check-input”);
input.type = “radio”;
input.name = `q${currentQuestionIndex}`;
input.value = option;

div.appendChild(input);
div.appendChild(document.createTextNode(” ” + option));
questionDiv.appendChild(div);
});

const button = document.createElement(“button”);
button.type = “button”;
button.classList.add(“btn”, “mt-2”);
button.innerText = (currentQuestionIndex === questions.length – 1) ? “Submit” : “Next”;
button.classList.add((currentQuestionIndex === questions.length – 1) ? “btn-success” : “btn-primary”);
button.onclick = () => {
saveAnswer();
moveToNextQuestion();
};
questionDiv.appendChild(button);
container.appendChild(questionDiv);
}

function saveAnswer() {
const selected = document.querySelector(`input[name=”q${currentQuestionIndex}”]:checked`);
selectedAnswers[currentQuestionIndex] = selected ? selected.value : “No answer”;
}

function moveToNextQuestion() {
clearInterval(timerInterval);
timeLeft = 300;

if (currentQuestionIndex {
if (timeLeft <= 0) {
saveAnswer();
moveToNextQuestion();
return;
}
timeLeft–;
let minutes = Math.floor(timeLeft / 60);
let seconds = timeLeft % 60;
document.getElementById("timer").textContent = `Time left: ${minutes}:${seconds < 10 ? "0" : ""}${seconds}`;
}, 1000);
}

function submitQuiz() {
clearInterval(timerInterval);
document.getElementById("quizSection").classList.add("hidden");
document.getElementById("resultSection").classList.remove("hidden");

const name = document.getElementById("name").value.trim();
let score = 0;

let fullReportHTML = "

fullReportHTML += `

Q${i + 1}: ${q.text}
`;
fullReportHTML += `Your Answer: ${selected}
`;
fullReportHTML += `Correct Answer: ${correct}
`;
fullReportHTML += `${isCorrect ? ‘Correct’ : ‘Incorrect’}

`;
});
fullReportHTML += “

“;

document.getElementById(“result”).innerHTML = `Dear ${name},
You scored ${score} out of ${questions.length}.`;
document.getElementById(“fullReport”).innerHTML = fullReportHTML;
}

function downloadPDF() {
const element = document.getElementById(“resultReport”);
html2pdf().from(element).save(“Quiz_Report.pdf”);
}