required rate of redemption
required rate of earning
required rate of return
required option
Answer is Right!
Answer is Wrong!
Detailed SolutionAn interest rate which is used in calculation of cash flows of bonds is called
Financial management
2. A Current Ratio of less than one means:
Fixed Assets > Current Assets
Share Capital > Current Assets
Answer is Right!
Answer is Wrong!
3. Value of stock is Rs 1200 and preferred dividend is Rs 120 then required rate of return would be
Rs 144,000.00
10.00%
Rs 10.00
0.2 times
Answer is Right!
Answer is Wrong!
4. Which of the following is incorrect for NOI?
k0 is constant
kd is constant
ke is constant
kd & k0 are constant
Answer is Right!
Answer is Wrong!
Detailed SolutionWhich of the following is incorrect for NOI?
5. Rate of return which considers riskiness and an available returns on investments is classified as
constant dividend
constant rate
maximum rate of return
minimum acceptable rate of return
Answer is Right!
Answer is Wrong!
6. Cost of issuing new shares to the public is known as:
Cost of Equity
Cost of Capital
Flotation Cost
Marginal Cost of Capital
Answer is Right!
Answer is Wrong!
Detailed SolutionCost of issuing new shares to the public is known as:
7. Profit margin multiply assets turnover multiply equity multiplier is used to calculate
return on turnover
return on stock
return on assets
return on equity
Answer is Right!
Answer is Wrong!
8. According to the traditional approach cost of capital affected by?
debt-equity mix
debt-capital mix
equity expenses mix
debt-interest mix
Answer is Right!
Answer is Wrong!
Detailed SolutionAccording to the traditional approach cost of capital affected by?
9. In an option pricing, a rises in risk free rate results in option’s value
slight time decreases
slight increases
slight decreases
slight time increases
Answer is Right!
Answer is Wrong!
Detailed SolutionIn an option pricing, a rises in risk free rate results in option’s value
10. In calculation of time, value of money, ”N ”represents
number of payment periods
number of investment
number of instalments
number of premium received
Answer is Right!
Answer is Wrong!
Detailed SolutionIn calculation of time, value of money, ”N ”represents