Financial management

1. Ratios which relate firm’s stock to its book value per share, cash flow and earnings are classified as

return ratios
market value ratios
marginal ratios
equity ratios

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share, cash flow and earnings are classified as" class="read-more button" href="https://exam.pscnotes.com/mcq/ratios-which-relate-firms-stock-to-its-book-value-per-share-cash-flow-and-earnings-are-classified-as/#more-57681">Detailed SolutionRatios which relate firm’s stock to its book value per share, cash flow and earnings are classified as

2. Risk on a stock portfolio which cannot be eliminated or reduced by placing it in diversified portfolio is classified as

diversifiable risk
market risk
stock risk
portfolio risk

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diversified portfolio is classified as" class="read-more button" href="https://exam.pscnotes.com/mcq/risk-on-a-stock-portfolio-which-cannot-be-eliminated-or-reduced-by-placing-it-in-diversified-portfolio-is-classified-as/#more-57680">Detailed SolutionRisk on a stock portfolio which cannot be eliminated or reduced by placing it in diversified portfolio is classified as

3. Operating leverage x Financial leverage = ________

Combined Leverage
Financial Combined Leverage
Operating Combined Leverage
Fixed leverage

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button" href="https://exam.pscnotes.com/mcq/operating-leverage-x-financial-leverage-________/#more-57638">Detailed SolutionOperating leverage x Financial leverage = ________

4. Risk in average individual stock can be reduced by placing an individual stock in

low risk portfolio
diversified portfolio
undiversified portfolio
high risk portfolio

Detailed SolutionRisk in average individual

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stock can be reduced by placing an individual stock in

5. A price for equity is called

interest rate
cost of equity
debt rate
investment return

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448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z"/> Subscribe on YouTube href="https://exam.pscnotes.com/mcq/a-price-for-equity-is-called/#more-57623">Detailed SolutionA price for equity is called

6. Forecast by analysts, retention growth model and historical growth rates are methods used for an

estimate future growth
estimate option future value
estimate option present value
estimate growth ratio

Detailed SolutionForecast

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48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z"/> Subscribe on YouTube
by analysts, retention growth model and historical growth rates are methods used for an

7. Use of safety stock by a firm would:

Increase Inventory Cost
Decrease Inventory Cost
No effect on Cost
None of the above

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stock by a firm would:" class="read-more button" href="https://exam.pscnotes.com/mcq/use-of-safety-stock-by-a-firm-would/#more-57575">Detailed SolutionUse of safety stock by a firm would:

8. Premium which is considered as difference of expected return on common stock and current yield on Treasury bonds is called

current risk premium
past risk premium
beta premium
expected premium

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expected return on common stock and current yield on Treasury bonds is called" class="read-more button" href="https://exam.pscnotes.com/mcq/premium-which-is-considered-as-difference-of-expected-return-on-common-stock-and-current-yield-on-treasury-bonds-is-called/#more-57572">Detailed SolutionPremium which is considered as difference of expected return on common stock and current yield on Treasury bonds is called

9. Total return is equal to________.

capital gain and yield
yield and interest
capital gain
yield

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viewBox="0 0 576 512"> Subscribe on YouTube to________." class="read-more button" href="https://exam.pscnotes.com/mcq/total-return-is-equal-to________/#more-57566">Detailed SolutionTotal return is equal to________.

10. A type of contract in which contract holder has right to sell an asset at specific period for predetermining price is classified as

option
written contract
determined contract
featured contract

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an asset at specific period for predetermining price is classified as" class="read-more button" href="https://exam.pscnotes.com/mcq/a-type-of-contract-in-which-contract-holder-has-right-to-sell-an-asset-at-specific-period-for-predetermining-price-is-classified-as/#more-57561">Detailed SolutionA type of contract in which contract holder has right to sell an asset at specific period for predetermining price is classified as

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