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NEW QUESTION: 1
A company has an opportunity to invest in a positive net present value project, but the project would require debt finance that would push the company's gearing ever a limit imposed by a debt covenant on an existing loan.
Which THREE of the following actions could be taken by the company?
A. The directors could proceed will the project because their primary duly is maximise shared older wealth, even if that conflicts with lenders' interest.
B. The company could seek alternative sources of finding, such as a reduction in the annual dividend payment, to finance the project.
C. The company could approach its existing Lenders to negotiate a relaxation of :he conditions imposed by the covenant.
D. The project could proceed if the cash inflows from the project will enable some of the debt to be repaid before the end of the financial year and so the breach of covenant may never be detected
E. The directors could meet with key shareholder to discuss whether they wish the project proceed despite the breach of the covenant
F. The project could be foregone if it cannot be funded without breaching the covenant
Answer: B,C,F
NEW QUESTION: 2
£100 of new cash is issued, which is then deposited in a bank which is part of a banking system operating a cash ratio of 10%. The maximum possible increase in the money supply which can follow from this transaction, additional to the initial deposit, is
A. £900
B. £1000
C. £90
D. £190
Answer: A
NEW QUESTION: 3
A. Option B
B. Option A
C. Option D
D. Option C
Answer: A
NEW QUESTION: 4
All Google AdWords are reviewed for the content and compliance with Google policy. If an advertiser creates an advertisement that is deemed to be adult in nature, which one of the following statements would not apply to the advertiser?
A. Google does not accept adult ads.
B. Adult ads won't appear for search queries that aren't considered adult in nature, even if the query is used as a keyword in the campaign.
C. Adult ads won't appear for search queries that aren't considered adult in nature, even if the query is used as a keyword in the campaign.
D. Non-family and adult ads won't appear on some sites and products in the Google Network that choose to accept only family safe ads.
Answer: A
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EEB-101 Exam Info
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