Financial management

[amp_mcq option1=”There are no corporate or personal income tax” option2=”Investors are assumed to be rational and behave accordingly” option3=”There is no corporate tax though there are personal income tax” option4=”Capital markets are perfect” correct=”option3″]

Detailed SolutionWhich of the following is not an assumption in Miller and Modigliani approach?

[amp_mcq option1=”self-held stock” option2=”privately held stock” option3=”publicly held stock” option4=”enactive held stock” correct=”option3″]

Detailed SolutionStock in large companies and own by people who are not active in management is classified as

[amp_mcq option1=”cash only” option2=”cash and bank balances” option3=”cash and near cash assets” option4=”fixed assets” correct=”option3″]

Detailed SolutionThe cash management refers to management of ___________.

[amp_mcq option1=”management change dividends to protect their seats” option2=”dividend changes are thought to signal future expectations” option3=”MM state that absolute level of dividends is irrelevant” option4=”changes determine the level of borrowing” correct=”option2″]

Detailed SolutionDividend changes are perceived important than the absolute level of dividends because.

[amp_mcq option1=”Sales” option2=”Debtors” option3=”Debt collection period” option4=”All of the above” correct=”option4″]

Detailed SolutionIf cash discount is offered to customers, then which of the following would increase?

[amp_mcq option1=”price earning ratio” option2=”earning price ratio” option3=”pricing ratio” option4=”earning ratio” correct=”option1″]

Detailed SolutionPrice per share divided by earnings per share is formula for calculating

[amp_mcq option1=”savings associations” option2=”loans associations” option3=”preferred and common associations” option4=”savings and loans associations” correct=”option4″]

Detailed SolutionFinancial corporations which serve individual savers and commercial mortgage borrowers are classified as

[amp_mcq option1=”binomial parity relationship” option2=”put parity relationship” option3=”put option parity relationship” option4=”put call parity relationship” correct=”option1″]

Detailed SolutionWhen two portfolios have identical values and payoffs then it is classified as

[amp_mcq option1=”repaid schedule” option2=”depreciated schedule” option3=”amortization schedule” option4=”appreciated schedule” correct=”option3″]

Detailed SolutionA schedule which shows interest constitutes reduced principal and unpaid balance is considered as

[amp_mcq option1=”expected risk” option2=”beta risk” option3=”industry risk” option4=”returning risk” correct=”option2″]

Detailed SolutionA risk associated with project and way considered by well diversified stockholder is classified as