Financial management

[amp_mcq option1=”input data and key output” option2=”depreciation schedule” option3=”net salvage values” option4=”all of above” correct=”option4″]

Detailed SolutionAn analysis and estimation of cash flows include

[amp_mcq option1=”Intercept at Y-axis” option2=”Intercept at X-axis” option3=”Slope of EBIT-EPS line” option4=”None of the above” correct=”option1″]

Detailed SolutionFinancial break-even level of EBIT is:

[amp_mcq option1=”Only 1st statement” option2=”Only 2nd statement” option3=”Both 1st and 3rd statements” option4=”All the three statements.” correct=”option3″]

Detailed SolutionWhich of the following is/are false regarding capital structure theory as stated by Miller and Modigliani? 1) If agency costs are considered, the expected agency costs increases as the debt-equity ratio decreases. 2) With the given assumptions, there is no optimal capital structure. 3) In the presence of taxes, the market value of the firm decreases by the tax shield of debt

[amp_mcq option1=”Benefit in very small” option2=”Cost is very high” option3=”No sense to pay earlier” option4=”None of the above” correct=”option4″]

Detailed SolutionCash discount terms offered by trade creditors never be accepted because:

[amp_mcq option1=”dividing standard deviation by expected value” option2=”calculating the percentage each asset is to the total portfolio value” option3=”calculating the return of each asset to total portfolio return” option4=”dividing expected value by the standard deviation” correct=”option2″]

Detailed SolutionPortfolio weights are found by_________________.

[amp_mcq option1=”Rs 80.00″ option2=”Rs 8,000.00″ option3=”Rs 20.00″ option4=”Rs 50.00″ correct=”option3″]

Detailed SolutionValue of stock is Rs 400 and required rate of return is 20% then preferred dividend would be

[amp_mcq option1=”Shareholder wealth maximization” option2=”Profit maximization” option3=”Stakeholder maximization” option4=”EPS maximization” correct=”option2″]

Detailed SolutionWhat is the most appropriate goal of the firm?

[amp_mcq option1=”standing bonds” option2=”outdated bonds” option3=”dated bonds” option4=”seasoned bonds” correct=”option4″]

Detailed SolutionAn outstanding bonds are also classified as

[amp_mcq option1=”financial” option2=”Marketing” option3=”stock” option4=”purchasing” correct=”option4″]

Detailed SolutionGood inventory management is good ________ management.

[amp_mcq option1=”First in first out” option2=”Last in first out” option3=”last in last out” option4=”Both A and B” correct=”option1″]

Detailed SolutionAn inventory recording in balance sheet includes