[amp_mcq option1=”capital market line” option2=”security market line” option3=”fixed market line” option4=”variable market line” correct=”option1″]
Financial management
2. Value of stock is Rs 250 and call option obligation is Rs 100 then current value of portfolio would be
[amp_mcq option1=”Rs 125.00″ option2=”Rs 150.00″ option3=”Rs 350.00″ option4=”Rs 2.50″ correct=”option1″]
3. Cost of common stock is 13% and bond risk premium is 5% then bond yield would be
[amp_mcq option1=”20.00%” option2=”2.60%” option3=”8.00%” option4=”18.00%” correct=”option3″]
Detailed SolutionCost of common stock is 13% and bond risk premium is 5% then bond yield would be
4. Cost of equity which is raised by reinvesting earnings internally must be higher than the
[amp_mcq option1=”cost of initial offering” option2=”cost of new common equity” option3=”cost of preferred equity” option4=”cost of floatation” correct=”option2″]
5. An earning before interest, taxes, depreciation and amortization are calculated by
[amp_mcq option1=”subtracting operating cost from net sales” option2=”subtracting net sales from operating costs” option3=”adding operating cost and net sales” option4=”adding interest and taxes” correct=”option1″]
Detailed SolutionAn earning before interest, taxes, depreciation and amortization are calculated by
6. Beta reflects stock risk for investors which is usually
[amp_mcq option1=”individual” option2=”collective” option3=”weighted” option4=”linear” correct=”option2″]
Detailed SolutionBeta reflects stock risk for investors which is usually
7. All assets are perfectly divisible and liquid in
[amp_mcq option1=”tax free pricing model” option2=”cost free pricing model” option3=”capital asset pricing model” option4=”stock pricing model” correct=”option3″]
Detailed SolutionAll assets are perfectly divisible and liquid in
8. Which of the following is true?
[amp_mcq option1=”Under Traditional Approach, overall cost of capital remains same” option2=”Under NI Approach, overall cost of capital remains same” option3=”Under NOI Approach, overall cost of capital remains same” option4=”None of the above” correct=”option4″]
9. A group of mutual funds with a common management are known as______________.
[amp_mcq option1=”fund syndicates” option2=”fund conglomerates” option3=”fund families” option4=”fund complexes” correct=”option3″]
Detailed SolutionA group of mutual funds with a common management are known as______________.
10. The underwriter has to take up ________________.
[amp_mcq option1=”the fixed portions of the issue capital” option2=”the unsubscribed part of the agreed portion” option3=”the agreed portion or can refuse if” option4=”the unfixed portions of the issue capital” correct=”option2″]
Detailed SolutionThe underwriter has to take up ________________.