[amp_mcq option1=”Collections > Current Purchases” option2=”Collections > Current Sales” option3=”Collections < Current Purchases" option4="Collections < Current Sales" correct="option3"]
Financial management
2. According to capital asset pricing model assumptions, quantities of all assets are
given and fixed
not given and fixed
not given and variable
given and variable
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Answer is Wrong!
Detailed SolutionAccording to capital asset pricing model assumptions, quantities of all assets are
3. Cash Inflows from a project include:
Tax Shield of Depreciation
After-tax Operating Profits
Raising of Funds
Both A and B
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Answer is Wrong!
4. Financial risk is most associated with_______________.
the use of equity financing by corporations
the use of debt financing by corporations
Equity investments held by corporations
Debt investments held by corporations.
Answer is Right!
Answer is Wrong!
Detailed SolutionFinancial risk is most associated with_______________.
5. Which of the following is a liability of a bank?
Treasury Bills
Commercial Papers
Certificate of Deposits
Junk Bonds
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Answer is Wrong!
Detailed SolutionWhich of the following is a liability of a bank?
6. Future value interest factor takes ____________.
Compounding rate
Discounting rate
Inflation rate
Deflation rate
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Answer is Wrong!
Detailed SolutionFuture value interest factor takes ____________.
7. Stock which has fixed payments and failure of payments which do not lead to bankruptcy is classified as
common stock
preferred stock
bonds equity
common shares
Answer is Right!
Answer is Wrong!
8. Cost of not carrying sufficient inventory is known as:
Carrying Cost
Holding Cost
Total Cost
Stock-out Cost
Answer is Right!
Answer is Wrong!
Detailed SolutionCost of not carrying sufficient inventory is known as:
9. Most investors are risk averse which means____________.
they will assume more risk only if they are compensated by higher expected return
they will always invest in the investment with the lowest possible risk
they will always invest in the investment with the lowest possible risk
they avoid the stock market due to the high degree of risk
Answer is Right!
Answer is Wrong!
Detailed SolutionMost investors are risk averse which means____________.
10. ‘Judicious use of leverage’ is suggested by:
Net Income Approach
Net Operating Income Approach
Traditional Approach
All of the above
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Answer is Wrong!
Detailed Solution‘Judicious use of leverage’ is suggested by: