Financial management

1. Which of the following has helped to eliminate the use of stock certificates by placing stock transactions on computers?

Demat account
Securities Exchange Commission
Depository Trust Company
Federal Depository Insurance Corporation.

Detailed SolutionWhich of the following has helped to eliminate the use of stock certificates by placing stock transactions on computers?

2. In regression of capital asset pricing model, an intercept of excess returns is classified as

Sharpe's reward to variability ratio
tenor's reward to volatility ratio
Jensen's alpha
tenor's variance to volatility ratio

Detailed SolutionIn regression of capital asset pricing model, an intercept of excess returns is classified as

3. Which of the following stresses on investor’s preference reorient dividend than higher future capital gains?

Walter's Model
Residuals Theory
Gordon's Model
MM Model

Detailed SolutionWhich of the following stresses on investor’s preference reorient dividend than higher future capital gains?

4. An indication in a way that variance of y-variable is explained by x-variable which is shown as

degree of dispersion is one
degree of dispersion is two
degree of dispersion is three
degree of dispersion is four

Detailed SolutionAn indication in a way that variance of y-variable is explained by x-variable which is shown as

5. Yield on bond is 7% and market required return is 14% then market risk premium would be

2.00%
21.00%
0.50%
7.00%

Detailed SolutionYield on bond is 7% and market required return is 14% then market risk premium would be

6. Condition in which company’s imports are more than its exports is classified as

foreign trade
foreign trade deficits
foreign trade surplus
trade surplus

Detailed SolutionCondition in which company’s imports are more than its exports is classified as

7. An original investment is Rs 30 and an expected capital gain is Rs 10 then an expected final stock price will be

Rs 20.00
Rs 40.00
-Rs 40.00
-Rs 20.00

Detailed SolutionAn original investment is Rs 30 and an expected capital gain is Rs 10 then an expected final stock price will be

8. A higher accounts receivable turnover ratio means__________.

lower debt collection period
higher debt collection period
lower sales
higher sales

Detailed SolutionA higher accounts receivable turnover ratio means__________.

9. EOQ determines the order size when:

Total Order Cost is Minimum
Total Number of Order is least
Total Inventory Cost is minimum
None of the above

Detailed SolutionEOQ determines the order size when:

10. The largest single institutional owner of common stocks is________.

mutual funds
insurance companies
pension funds
commercial banks

Detailed SolutionThe largest single institutional owner of common stocks is________.

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