[amp_mcq option1=”unit investment trust” option2=”mutual fund” option3=”closed-end investment company” option4=”real estate investment trust” correct=”option2″]
Detailed SolutionThe most popular type of Investment Company is a ________.
Financial management
2. An interest rate which is paid by firm as soon as it issues debt is classified as pre-tax
[amp_mcq option1=”term structure” option2=”market premium” option3=”risk premium” option4=”cost of debt” correct=”option4″]
3. If stock has a great risk related to it than a required return is
[amp_mcq option1=”higher” option2=”lower” option3=”zero” option4=”all of above” correct=”option1″]
Detailed SolutionIf stock has a great risk related to it than a required return is
4. Under the P/E model, stock price is a product of_____________.
[amp_mcq option1=”EPS and DPS” option2=”P/E ratio and EPS” option3=”EPS and required return” option4=”P/E ratio and required return” correct=”option4″]
Detailed SolutionUnder the P/E model, stock price is a product of_____________.
5. Double declining balance method and sum of years digits are included in
[amp_mcq option1=”yearly method” option2=”single methods” option3=”double methods” option4=”accelerated methods” correct=”option4″]
Detailed SolutionDouble declining balance method and sum of years digits are included in
6. According to Black Scholes model, short term seller receives today price which
[amp_mcq option1=”short term cash proceeds” option2=”proceeds in cheques” option3=”full cash proceeds” option4=”zero proceeds” correct=”option1″]
Detailed SolutionAccording to Black Scholes model, short term seller receives today price which
7. An inflation rate includes in bond’s interest rates is one which is inflation rate
[amp_mcq option1=”at bond issuance” option2=”expected in future” option3=”expected at time of maturity” option4=”expected at deferred call” correct=”option2″]
Detailed SolutionAn inflation rate includes in bond’s interest rates is one which is inflation rate
8. Dividend per share is Rs 15 and sell it for Rs 120 and floatation cost is Rs 3.0 then component cost of preferred stock will be
[amp_mcq option1=”12.82 times” option2=”0.1282 times” option3=”12.82%” option4=”Rs 12.82″ correct=”option3″]
9. In market analysis, market multiple is multiplied by firm earning before interest, taxes, depreciation and amortization to calculate
[amp_mcq option1=”market total value” option2=”firm total value” option3=”industry value” option4=”taxes value” correct=”option1″]
10. Receivables Management deals with:
[amp_mcq option1=”Receipts of raw materials” option2=”Debtors collection” option3=”Creditors management” option4=”Inventory management” correct=”option3″]