Financial management

1. Bonds issued to individuals by corporations are classified as

municipal bonds
corporate bonds
U.S treasury bonds
mortgages

Detailed SolutionBonds issued to individuals by corporations are classified as

2. An equation in which total assets are multiplied to profit margin is classified as

du DuPont equation
turnover equation
preference equation
common equation

Detailed SolutionAn equation in which total assets are multiplied to profit margin is classified as

3. According to probability distribution of rates of return, a close outcome to an expected value is shown by

value distribution
expected distribution
more peaked distribution
less peaked distribution

Detailed SolutionAccording to probability distribution of rates of return, a close outcome to an expected value is shown by

4. For any or lower degree of risk, highest or any expected return are concepts use in

risky portfolios
behavior portfolios
inefficient portfolios
efficient portfolios

Detailed SolutionFor any or lower degree of risk, highest or any expected return are concepts use in

5. Standard deviation is 18% and coefficient of variation is 1.5% an expected rate of return will be

27.00%
12.00%
19.50%
none of above

Detailed SolutionStandard deviation is 18% and coefficient of variation is 1.5% an expected rate of return will be

6. Projects which are mutually exclusive but different on scale of production or time of completion then the

external return method
net present value of method
net future value method
internal return method

Detailed SolutionProjects which are mutually exclusive but different on scale of production or time of completion then the

7. In case of partially debt-financed firm, k0 is less:

kd
kc
Both A and B
None of the above

Detailed SolutionIn case of partially debt-financed firm, k0 is less:

8. An uncovered cost at start of year is Rs 200, full cash flow during recovery year is Rs 400 and prior years to full recovery is 3 then payback would be

5 years
3.5 years
4 years
4.5 years

Detailed SolutionAn uncovered cost at start of year is Rs 200, full cash flow during recovery year is Rs 400 and prior years to full recovery is 3 then payback would be

9. Hewlett-Packard and Microsoft are examples of

limited corporate business
unlimited corporate business
controlled corporate business
corporation

Detailed SolutionHewlett-Packard and Microsoft are examples of

10. Paid dividends to common stockholders Rs 67,600,000 and common shares outstanding 55,000,000 then dividend per share will be

Rs 1.23
Rs 0.81
Rs 2.12
Rs 2.78

Detailed SolutionPaid dividends to common stockholders Rs 67,600,000 and common shares outstanding 55,000,000 then dividend per share will be

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