Financial management

1. Benefit of ‘Trading on Equity’ is available only if:

Rate of Interest > Rate of Return
Both A and B
None of A and B

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only if:" class="read-more button" href="https://exam.pscnotes.com/mcq/benefit-of-trading-on-equity-is-available-only-if/#more-47773">Detailed SolutionBenefit of ‘Trading on Equity’ is available only if:

2. Current price is Rs 40 and dividend paid is Rs 10 then dividend yield will be

Rs 25.00
25.00%
Rs 4.00
4.00%

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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
yield will be" class="read-more button" href="https://exam.pscnotes.com/mcq/current-price-is-rs-40-and-dividend-paid-is-rs-10-then-dividend-yield-will-be/#more-47756">Detailed SolutionCurrent price is Rs 40 and dividend paid is Rs 10 then dividend yield will be

3. If the following is an element of dividend policy?

Production capacity
Change in management
Informational content
Debt service capacity

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href="https://exam.pscnotes.com/mcq/if-the-following-is-an-element-of-dividend-policy/#more-47734">Detailed SolutionIf the following is an element of dividend policy?

4. An expected rate of return is denoted by

e-bar
r-bar
r-hat
e-hat

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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 href="https://exam.pscnotes.com/mcq/an-expected-rate-of-return-is-denoted-by/#more-47725">Detailed SolutionAn expected rate of return is denoted by

5. Dividend policy of a firm affects both the long-time financing and __________ wealth.

Owners
Creditors
Debtor
Shareholders

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class="read-more button" href="https://exam.pscnotes.com/mcq/dividend-policy-of-a-firm-affects-both-the-long-time-financing-and-__________-wealth/#more-47701">Detailed SolutionDividend policy of a firm affects both the long-time financing and __________ wealth.

6. Which, among the following, are common misconceptions about cost of capital?

Depreciation-generated funds have no cost
Cost of capital is low if a project is heavily debt-financed
Cost of equity is equal to the dividend rate
All of the above

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class="read-more-container"> Join Our Telegram Channel misconceptions about cost of capital?" class="read-more button" href="https://exam.pscnotes.com/mcq/which-among-the-following-are-common-misconceptions-about-cost-of-capital/#more-47690">Detailed SolutionWhich, among the following, are common misconceptions about cost of capital?

7. Savings in respect of a cost is treated in capital budgeting as:

An Inflow
An Outflow
Nil
None of the above

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capital budgeting as:" class="read-more button" href="https://exam.pscnotes.com/mcq/savings-in-respect-of-a-cost-is-treated-in-capital-budgeting-as/#more-47676">Detailed SolutionSavings in respect of a cost is treated in capital budgeting as:

8. Operating Leverage is the response of changes in __________

EBIT to the changes in sales
EPS to the changes in EBIT
Production to the changes in sales
None of the above

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is the response of changes in __________" class="read-more button" href="https://exam.pscnotes.com/mcq/operating-leverage-is-the-response-of-changes-in-__________/#more-47660">Detailed SolutionOperating Leverage is the response of changes in __________

9. ‘Bird in hand’ argument is given by:

Walker's Model
Gordon's Model
MM Mode
Residuals Theory

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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/bird-in-hand-argument-is-given-by/#more-47591">Detailed Solution‘Bird in hand’ argument is given by:

10. Situation in which new business reduces an existing business of firm is classified as

non-cannibalization effect
cannibalization effect
external effect
internal effect

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classified as" class="read-more button" href="https://exam.pscnotes.com/mcq/situation-in-which-new-business-reduces-an-existing-business-of-firm-is-classified-as/#more-47587">Detailed SolutionSituation in which new business reduces an existing business of firm is classified as

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