Financial management

1. Ratios which relate firm’s stock to its book value per share, cash flow and earnings are classified as

return ratios
market value ratios
marginal ratios
equity ratios

Detailed

Join Our Telegram Channel
Subscribe on YouTube
SolutionRatios which relate firm’s stock to its book value per share, cash flow and earnings are classified as

2. Risk on a stock portfolio which cannot be eliminated or reduced by placing it in diversified portfolio is classified as

diversifiable risk
market risk
stock risk
portfolio risk

Subscribe on YouTube

in diversified portfolio is classified as" class="read-more button" href="https://exam.pscnotes.com/mcq/risk-on-a-stock-portfolio-which-cannot-be-eliminated-or-reduced-by-placing-it-in-diversified-portfolio-is-classified-as/#more-57680">Detailed
Join Our Telegram Channel
SolutionRisk on a stock portfolio which cannot be eliminated or reduced by placing it in diversified portfolio is classified as

3. Operating leverage x Financial leverage = ________

Combined Leverage
Financial Combined Leverage
Operating Combined Leverage
Fixed leverage

Join Our Telegram Channel
Subscribe on YouTube
button" href="https://exam.pscnotes.com/mcq/operating-leverage-x-financial-leverage-________/#more-57638">Detailed SolutionOperating leverage x Financial leverage = ________

4. Risk in average individual stock can be reduced by placing an individual stock in

low risk portfolio
diversified portfolio
undiversified portfolio
high risk portfolio

Join Our Telegram Channel
Subscribe on YouTube
stock in" class="read-more button" href="https://exam.pscnotes.com/mcq/risk-in-average-individual-stock-can-be-reduced-by-placing-an-individual-stock-in/#more-57631">Detailed SolutionRisk in average individual stock can be reduced by placing an individual stock in

5. A price for equity is called

interest rate
cost of equity
debt rate
investment return

Join Our Telegram Channel

512"> Subscribe on YouTube class="read-more button" href="https://exam.pscnotes.com/mcq/a-price-for-equity-is-called/#more-57623">Detailed SolutionA price for equity is called

6. Forecast by analysts, retention growth model and historical growth rates are methods used for an

estimate future growth
estimate option future value
estimate option present value
estimate growth ratio

Join Our Telegram Channel
Subscribe on YouTube
href="https://exam.pscnotes.com/mcq/forecast-by-analysts-retention-growth-model-and-historical-growth-rates-are-methods-used-for-an/#more-57583">Detailed SolutionForecast by analysts, retention growth model and historical growth rates are methods used for an

7. Use of safety stock by a firm would:

Increase Inventory Cost
Decrease Inventory Cost
No effect on Cost
None of the above

Join Our Telegram Channel
Subscribe on YouTube
button" href="https://exam.pscnotes.com/mcq/use-of-safety-stock-by-a-firm-would/#more-57575">Detailed SolutionUse of safety stock by a firm would:

8. Premium which is considered as difference of expected return on common stock and current yield on Treasury bonds is called

current risk premium
past risk premium
beta premium
expected premium

Detailed SolutionPremium which

Join Our Telegram Channel
Subscribe on YouTube
is considered as difference of expected return on common stock and current yield on Treasury bonds is called

9. Total return is equal to________.

capital gain and yield
yield and interest
capital gain
yield

Join Our Telegram Channel
Subscribe on YouTube
href="https://exam.pscnotes.com/mcq/total-return-is-equal-to________/#more-57566">Detailed SolutionTotal return is equal to________.

10. A type of contract in which contract holder has right to sell an asset at specific period for predetermining price is classified as

option
written contract
determined contract
featured contract

Join Our Telegram Channel
Subscribe on YouTube
classified as" class="read-more button" href="https://exam.pscnotes.com/mcq/a-type-of-contract-in-which-contract-holder-has-right-to-sell-an-asset-at-specific-period-for-predetermining-price-is-classified-as/#more-57561">Detailed SolutionA type of contract in which contract holder has right to sell an asset at specific period for predetermining price is classified as

Page 1Page 2Page 3Page 4Page 5
Test 1Test 2Test 3Test 4Test 5Test 6Test 7Test 8Test 9Test 10Test 11Test 12Test 13Test 14Test 15Test 16Test 17Test 18Test 19Test 20Test 21Test 22Test 23