POST UTME PAN-ATLANTIC UNIVERSITY 2020 Commerce | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A company uses the weighted average cost of capital (WACC) method to calculate its cost of capital. If the company's cost of debt is 8% and its cost of equity is 12%, and the company has a tax rate of 25%, what is its WACC?
Question 2
A company uses a first-in-first-out (FIFO) inventory system to manage its inventory. If the company purchases 100 units of a product at 10 each and later purchases 50 units of the same product at 12 each, what is the total cost of the inventory using the FIFO method?
Question 3
A company's production function is given by the Cobb-Douglas production function: Q = 10L^0.4K^0.6. If the company's labor and capital inputs are increased by 20% and 15% respectively, what is the percentage change in output?
Question 4
A firm is considering two different marketing strategies: A and B. Strategy A has a probability of success of 0.7 and a probability of failure of 0.3. Strategy B has a probability of success of 0.8 and a probability of failure of 0.2. If the firm's objective is to maximize expected profit, which strategy should it choose?
Question 5
A bank offers a loan with a 5-year term and an annual interest rate of 10%. If the borrower pays ₦100,000 as the principal amount, how much will the borrower pay in total at the end of the 5-year term?
Question 6
In a perfectly competitive market, the law of supply states that as the price of a good increases, the quantity supplied will
Question 7
A company uses the just-in-time (JIT) inventory system. If the company orders 100 units of a product and the supplier delivers 120 units, what is the company's inventory turnover ratio?
Question 8
A company has a risk management policy that requires it to maintain a minimum of ₦5 million in reserve for each ₦10 million of assets. If the company has ₦50 million in assets, what is the minimum amount of reserve it must maintain?
Question 9
A company's foreign exchange risk can be hedged using a forward contract. If the company expects to receive 100,000 in 6 months and the spot exchange rate is 1 = ₦200, what is the value of the forward contract?
Question 10
A company uses a just-in-time (JIT) inventory system to manage its inventory. Which of the following is a key benefit of a JIT inventory system?
Question 11
A company uses a first-in-first-out (FIFO) inventory system to manage its inventory. If the company purchases 100 units of a product at 10 each and later purchases 50 units of the same product at 12 each, what is the total cost of the inventory using the FIFO method?
Question 12
A company exports 50% of its production to foreign countries. If the company produces 10,000 units of a product, how many units will be exported?
Question 13
A warehouse has a storage capacity of 10,000 square feet. If the warehouse is currently storing 8,000 square feet of goods, what is the storage capacity utilization ratio?
Question 14
A marketing manager is considering two advertising campaigns: Campaign A and Campaign B. Campaign A has a fixed cost of ₦100,000 and a variable cost of ₦50 per unit sold, while Campaign B has a fixed cost of ₦150,000 and a variable cost of ₦30 per unit sold. If the company sells 10,000 units, which campaign is more profitable?
Question 15
A company has purchased an insurance policy that covers losses due to fire, theft, and natural disasters. The policy has a deductible of ₦50,000 and a maximum payout of ₦1,000,000. If the company suffers a loss of ₦750,000 due to a fire, how much will the insurance company pay?
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