[amp_mcq option1=”stock laws” option2=”by laws” option3=”liability laws” option4=”corporate laws” correct=”option2″]
Financial management
2. In case of the indivisible projects, which of the following may not give the optimum result?
[amp_mcq option1=”Internal Rate of Return” option2=”Profitability Index” option3=”Feasibility Set Approach” option4=”All of the above” correct=”option4″]
3. Type of options that do not have stock in portfolio to back up options is classified as
[amp_mcq option1=”undue options” option2=”due options” option3=”naked options” option4=”total options” correct=”option3″]
4. Preferred dividend is divided for required rate of return to calculate
[amp_mcq option1=”value of number of shares” option2=”value of equity” option3=”value of preferred stock” option4=”value of common stock” correct=”option3″]
Detailed SolutionPreferred dividend is divided for required rate of return to calculate
5. Banks such as Bank of America serves a range of savers and borrowers are classified as
[amp_mcq option1=”transfer banks” option2=”commercial banks” option3=”serving banks” option4=”nation’s banks” correct=”option2″]
6. An interest yield = 7.9% and capital gains yield = 2.5% then total rate of return is
[amp_mcq option1=”10.00%” option2=”3.16%” option3=”0.31%” option4=”5.40%” correct=”option1″]
7. Which of the following portfolios has the least reduction of risk?
[amp_mcq option1=”A portfolio with securities all having positive correlation with each other” option2=”A portfolio with securities all has zero correlation with each other” option3=”A portfolio with securities all having negative correlation with each other” option4=”A portfolio with securities all has skewed correlation with each other” correct=”option1″]
Detailed SolutionWhich of the following portfolios has the least reduction of risk?
8. Indifference Level of EBIT is one at which:
[amp_mcq option1=”EPS is zero” option2=”EPS is minimum” option3=”EPS is highest” option4=”None of these” correct=”option4″]
Detailed SolutionIndifference Level of EBIT is one at which:
9. Process in which managers of company identify projects to add value is classified as
[amp_mcq option1=”capital budgeting” option2=”cost budgeting” option3=”book value budgeting” option4=”equity budgeting” correct=”option1″]
10. From the point of view of the lessee, a lease is a:
[amp_mcq option1=”Working capital decision” option2=”Financing decision” option3=”Buy or make decision” option4=”Investment decision” correct=”option2″]
Detailed SolutionFrom the point of view of the lessee, a lease is a: