[amp_mcq option1=”liberal” option2=”formal” option3=”strict” option4=”Varying” correct=”option1″]
Financial management
2. In capital budgeting, the term Capital Rationing implies:
[amp_mcq option1=”That no retained earnings available” option2=”That limited funds are available for investment” option3=”That no external funds can be raised” option4=”That no fresh investment is required in current year” correct=”option2″]
Detailed SolutionIn capital budgeting, the term Capital Rationing implies:
3. Difference between actual return on stock and predicted return is considered as
[amp_mcq option1=”probability error” option2=”actual error” option3=”prediction error” option4=”random error” correct=”option3″]
Detailed SolutionDifference 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
[amp_mcq option1=”controlled corporate business” option2=”Corporation” option3=”limited corporate business” option4=”unlimited corporate business” correct=”option2″]
5. __________ is concerned with the maximization of a firm’s stock price.
[amp_mcq option1=”Shareholder wealth maximization” option2=”Profit maximization” option3=”Stakeholder welfare maximization” option4=”EPS maximization” correct=”option1″]
Detailed Solution__________ is concerned with the maximization of a firm’s stock price.
6. Financial leverage is also known as.
[amp_mcq option1=”Trading on equity” option2=”Trading on debt” option3=”Interest on equity” option4=”Interest on debt” correct=”option1″]
7. Difference between bond’s yield and any other security yield having same maturities is considered as
[amp_mcq option1=”maturity spread” option2=”bond spread” option3=”yield spread” option4=”interest spread” correct=”option3″]
8. Price for debt is called
[amp_mcq option1=”debt rate” option2=”investment return” option3=”discount rate” option4=”interest rate” correct=”option4″]
9. Beta coefficient is used to measure market risk which is an index of
[amp_mcq option1=”coefficient risk volatility” option2=”market risk volatility” option3=”stock market volatility” option4=”portfolio market portfolio” correct=”option1″]
Detailed SolutionBeta coefficient is used to measure market risk which is an index of
10. Bonds issued by small companies tend to have
[amp_mcq option1=”high liquidity premium” option2=”high inflation premium” option3=”high default premium” option4=”high yield premium” correct=”option4″]
Detailed SolutionBonds issued by small companies tend to have