Financial management

1. Beta which is estimated as regression slope coefficient is classified as

historical beta
market beta
coefficient beta
risky beta

Detailed SolutionBeta which is estimated as regression slope coefficient is classified as

2. Which of the following is not incorporated in Capital Budgeting?

Tax-Effect
Time Value of Money
Required Rate of Return
Rate of Cash Discount

Detailed SolutionWhich of the following is not incorporated in Capital Budgeting?

3. An attitude of investor towards dealing with risk determines the

rate of return
rate of exchange
rate of intrinsic stock
rate of extrinsic stock

Detailed SolutionAn attitude of investor towards dealing with risk determines the

4. A measure which is not included in Fama French Three-Factor model is

realized risk free rate
rate of return on market
random error
risk premium

Detailed SolutionA measure which is not included in Fama French Three-Factor model is

5. The growth in book value per share shows the_____________.

rise in share price
increase in physical asset of the firm
increase in net worth
growth in reserves

Detailed SolutionThe growth in book value per share shows the_____________.

6. A computerized trading network that matches buy and sell orders electronically entered by customers is a___________.

national markets system
electronic communications networks
internet investment service
global investment network.

Detailed SolutionA computerized trading network that matches buy and sell orders electronically entered by customers is a___________.

7. In independent projects evaluation, results of internal rate of return and net present value lead to

cash flow decision
cost decision
same decisions
different decisions

Detailed SolutionIn independent projects evaluation, results of internal rate of return and net present value lead to

8. Second factor in Fama French three factor model is the

size of industry
size of market
size of company
size of portfolio

Detailed SolutionSecond factor in Fama French three factor model is the

9. Bond which is offered below its face value is classified as

present value bond
original issue discount bond
coupon issued bond
discounted bond

Detailed SolutionBond which is offered below its face value is classified as

10. Net income and depreciation is Rs 313,650,000 and common shares outstanding are 55,000,000 then cash flow per share would be

Rs 5.70
Rs 6.70
Rs 7.70
Rs 8.70

Detailed SolutionNet income and depreciation is Rs 313,650,000 and common shares outstanding are 55,000,000 then cash flow per share would be

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