Financial management Archives

1. The most popular type of Investment Company is a ________.

unit investment trust

mutual fund

closed-end investment company

real estate investment trust

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Answer is Wrong!

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Solution

2. An interest rate which is paid by firm as soon as it issues debt is classified as pre-tax

term structure

market premium

risk premium

cost of debt

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Answer is Wrong!

Detailed SolutionAn interest rate which is paid

by firm as soon as it issues debt is classified as pre-tax

3. If stock has a great risk related to it than a required return is

higher

lower

zero

all of above

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Answer is Wrong!

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is" class="read-more button" href="https://exam.pscnotes.com/mcq/if-stock-has-a-great-risk-related-to-it-than-a-required-return-is/#more-58458">Detailed Solution

4. Under the P/E model, stock price is a product of_____________.

EPS and DPS

P/E ratio and EPS

EPS and required return

P/E ratio and required return

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Detailed Solution

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class="screen-reader-text">Under the P/E model, stock price is a product of_____________.

5. Double declining balance method and sum of years digits are included in

yearly method

single methods

double methods

accelerated methods

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Answer is Wrong!

Detailed SolutionDouble declining

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balance method and sum of years digits are included in

6. According to Black Scholes model, short term seller receives today price which

short term cash proceeds

proceeds in cheques

full cash proceeds

zero proceeds

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Answer is Wrong!

Detailed SolutionAccording to

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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

at bond issuance

expected in future

expected at time of maturity

expected at deferred call

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Answer is Wrong!

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