Financial management

1. An interest rate which is used in calculation of cash flows of bonds is called

required rate of redemption
required rate of earning
required rate of return
required option

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SolutionAn
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interest rate which is used in calculation of cash flows of bonds is called

2. A Current Ratio of less than one means:

Fixed Assets > Current Assets
Share Capital > Current Assets

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than one means:" class="read-more button" href="https://exam.pscnotes.com/mcq/a-current-ratio-of-less-than-one-means/#more-59870">Detailed SolutionA Current Ratio of less than one means:

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

Detailed SolutionValue of stock

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is Rs 1200 and preferred dividend is Rs 120 then required rate of return would be

4. Which of the following is incorrect for NOI?

k0 is constant
kd is constant
ke is constant
kd & k0 are constant

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is incorrect for NOI?" class="read-more button" href="https://exam.pscnotes.com/mcq/which-of-the-following-is-incorrect-for-noi/#more-59868">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

Detailed SolutionRate of return which considers

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riskiness and an available returns on investments is classified as

6. Cost of issuing new shares to the public is known as:

Cost of Equity
Cost of Capital
Flotation Cost
Marginal Cost of Capital

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href="https://exam.pscnotes.com/mcq/cost-of-issuing-new-shares-to-the-public-is-known-as/#more-59837">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

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to calculate" class="read-more button" href="https://exam.pscnotes.com/mcq/profit-margin-multiply-assets-turnover-multiply-equity-multiplier-is-used-to-calculate/#more-59777">Detailed SolutionProfit margin multiply assets turnover multiply equity multiplier is used to calculate

8. According to the traditional approach cost of capital affected by?

debt-equity mix
debt-capital mix
equity expenses mix
debt-interest mix

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button" href="https://exam.pscnotes.com/mcq/according-to-the-traditional-approach-cost-of-capital-affected-by/#more-59775">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

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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

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”N ”represents" class="read-more button" href="https://exam.pscnotes.com/mcq/in-calculation-of-time-value-of-money-n-represents/#more-59759">Detailed SolutionIn calculation of time, value of money, ”N ”represents

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