Financial management

1. A company having easy access to the capital markets can follow a ____________ dividend policy

liberal
formal
strict
Varying

Detailed SolutionA company

Join Our Telegram Channel
class="youtube-icon"> Subscribe on YouTube
having easy access to the capital markets can follow a ____________ dividend policy

2. In capital budgeting, the term Capital Rationing implies:

That no retained earnings available
That limited funds are available for investment
That no external funds can be raised
That no fresh investment is required in current year

Join Our Telegram Channel
Subscribe on YouTube
the term Capital Rationing implies:" class="read-more button" href="https://exam.pscnotes.com/mcq/in-capital-budgeting-the-term-capital-rationing-implies-2/#more-50233">Detailed SolutionIn capital budgeting, the term Capital Rationing implies:

3. Difference between actual return on stock and predicted return is considered as

probability error
actual error
prediction error
random error

Detailed SolutionDifference

Join Our Telegram Channel
47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z"/> Subscribe on YouTube
between actual return on stock and predicted return is considered as

4. Legal entity separation from its legal owners and managers with help of state laws is classified as

controlled corporate business
Corporation
limited corporate business
unlimited corporate business

Join Our Telegram Channel

target="_blank" class="youtube-subscribe-button"> Subscribe on YouTube laws is classified as" class="read-more button" href="https://exam.pscnotes.com/mcq/legal-entity-separation-from-its-legal-owners-and-managers-with-help-of-state-laws-is-classified-as/#more-50228">Detailed SolutionLegal entity separation from its legal owners and managers with help of state laws is classified as

5. __________ is concerned with the maximization of a firm’s stock price.

Shareholder wealth maximization
Profit maximization
Stakeholder welfare maximization
EPS maximization

Join Our Telegram Channel
Subscribe on YouTube
price." class="read-more button" href="https://exam.pscnotes.com/mcq/__________-is-concerned-with-the-maximization-of-a-firms-stock-price/#more-50223">Detailed Solution__________ is concerned with the maximization of a firm’s stock price.

6. Financial leverage is also known as.

Trading on equity
Trading on debt
Interest on equity
Interest on debt

Join Our Telegram Channel

42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z"/> Subscribe on YouTube class="read-more button" href="https://exam.pscnotes.com/mcq/financial-leverage-is-also-known-as/#more-50186">Detailed SolutionFinancial leverage is also known as.

7. Difference between bond’s yield and any other security yield having same maturities is considered as

maturity spread
bond spread
yield spread
interest spread

Join Our Telegram Channel
Subscribe on YouTube
href="https://exam.pscnotes.com/mcq/difference-between-bonds-yield-and-any-other-security-yield-having-same-maturities-is-considered-as/#more-50184">Detailed SolutionDifference between bond’s yield and any other security yield having same maturities is considered as

8. Price for debt is called

debt rate
investment return
discount rate
interest rate

Join Our Telegram Channel
Subscribe on YouTube
class="read-more button" href="https://exam.pscnotes.com/mcq/price-for-debt-is-called/#more-50168">Detailed SolutionPrice for debt is called

9. Beta coefficient is used to measure market risk which is an index of

coefficient risk volatility
market risk volatility
stock market volatility
portfolio market portfolio

Detailed SolutionBeta coefficient

Join Our Telegram Channel
Subscribe on YouTube
is used to measure market risk which is an index of

10. Bonds issued by small companies tend to have

high liquidity premium
high inflation premium
high default premium
high yield premium

Join Our Telegram Channel

74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z"/> Subscribe on YouTube button" href="https://exam.pscnotes.com/mcq/bonds-issued-by-small-companies-tend-to-have/#more-50151">Detailed SolutionBonds issued by small companies tend to have

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