Financial management

1. If the Money Discount Rate is 19% and Inflation Rate is 12%, then the Real Discount Rate is:

7%
5%
5.70%
6.25%

Detailed SolutionIf the

Join Our Telegram Channel
Subscribe on YouTube
Money Discount Rate is 19% and Inflation Rate is 12%, then the Real Discount Rate is:

2. Cost of money is affected by factors which includes

production opportunities
risk
all of above
inflation

Join Our Telegram Channel
Subscribe on YouTube
href="https://exam.pscnotes.com/mcq/cost-of-money-is-affected-by-factors-which-includes/#more-46391">Detailed SolutionCost of money is affected by factors which includes

3. Cost of capital is the ______ rate of return expected by the investor.

minimum
maximum
expected
marginal

Join Our Telegram Channel

64S117.2 64 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
href="https://exam.pscnotes.com/mcq/cost-of-capital-is-the-______-rate-of-return-expected-by-the-investor/#more-46388">Detailed SolutionCost of capital is the ______ rate of return expected by the investor.

4. Current option price is added to present value of portfolio for calculating

future value of portfolio
current value of stock
future value of stock
present value of portfolio

Detailed

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
SolutionCurrent option price is added to present value of portfolio for calculating

5. Which is the most expensive source of funds?

New Equity Shares
New Preference Shares
New Debts
Retained Earnings

Join Our Telegram Channel
Subscribe on YouTube
href="https://exam.pscnotes.com/mcq/which-is-the-most-expensive-source-of-funds/#more-46343">Detailed SolutionWhich is the most expensive source of funds?

6. Securities future value is Rs 1,000,000 and present value of securities is Rs 500,000 with an interest rate of 4.5%, ‘N’ will be

16.7473 years
0.0304 months
15.7473 years
0.7575 years

Detailed SolutionSecurities future value is Rs 1,000,000 and present value of securities

Subscribe on YouTube
Join Our Telegram Channel
is Rs 500,000 with an interest rate of 4.5%, ‘N’ will be

7. Which of the following characteristics are true, with reference to preference capital?

Preference dividend is not tax deductible
The claim of preference shareholders is prior to the claim of equity shareholders
Preference shareholders are not the owners of the concern
All of the above

Detailed SolutionWhich of the following characteristics are true, with reference to preference capital?

8. Weighted average of probabilities is classified as

average rate of return
expected rate of return
past rate of return
weighted rate of return

Join Our Telegram Channel

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 of probabilities is classified as" class="read-more button" href="https://exam.pscnotes.com/mcq/weighted-average-of-probabilities-is-classified-as/#more-46274">Detailed SolutionWeighted average of probabilities is classified as

9. Bad debt cost is not borne by factor in case of:

Pure Factoring
Without Recourse Factoring
With Recourse Factoring
None of the above

Join Our Telegram Channel
Subscribe on YouTube
href="https://exam.pscnotes.com/mcq/bad-debt-cost-is-not-borne-by-factor-in-case-of/#more-46252">Detailed SolutionBad debt cost is not borne by factor in case of:

10. Left side of balance sheet states the

appreciated earnings
liabilities
assets
stocks earnings

Detailed Solution

Join Our Telegram Channel
Subscribe on YouTube
class="screen-reader-text">Left side of balance sheet states the

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