Financial management

1. A type of project whose cash flows would not depend on each other is classified as

project net gain
independent projects
dependent projects
net value projects

Detailed SolutionA type of project whose cash flows would not depend on each other is classified as

2. Constant Dividend Per Share’ Policy is considered as:

Increasing Dividend Policy
Decreasing Dividend Policy
Stable Dividend Policy
None of the above

Detailed SolutionConstant Dividend Per Share’ Policy is considered as:

3. Firm’s which helps in indirect transfer such as Merrill Lynch is classified as

investment banking house
investment bank
saving house
saving bank

Detailed SolutionFirm’s which helps in indirect transfer such as Merrill Lynch is classified as

4. Cash Budget does not include:

Dividend Payable
Postal Expenditure
Issue of Capital
Total Sales Figure

Detailed SolutionCash Budget does not include:

5. Insufficient working capital results in __________.

Block of cash
Loosing interests
Lack of production
Lack of smooth flow of production

Detailed SolutionInsufficient working capital results in __________.

6. Value of stock is Rs 300 and preferred dividend is Rs 60 then required rate of return would be

18%
20%
22%
24%

Detailed SolutionValue of stock is Rs 300 and preferred dividend is Rs 60 then required rate of return would be

7. ________ decision relates to the determination of total amount of assets to be held in the firm.

Financing
Investment
Dividend
Controlling

Detailed Solution________ decision relates to the determination of total amount of assets to be held in the firm.

8. If deposited money Rs 10,000 in bank pays interest 10% annually, an amount after five years will be

Rs 16,105.14
Rs 16,110.14
Rs 16,115.14
Rs 16,505.14

Detailed SolutionIf deposited money Rs 10,000 in bank pays interest 10% annually, an amount after five years will be

9. Financial Planning deals with:

Preparation of Financial Statements
Planning for a Capital Issue
Preparing Budgets
All of the above

Detailed SolutionFinancial Planning deals with:

10. Stock selling price is Rs 35, expected dividend is Rs 5 and expected growth rate is 8% then cost of common stock would be

40.00%
22.29%
14.28%
80.00%

Detailed SolutionStock selling price is Rs 35, expected dividend is Rs 5 and expected growth rate is 8% then cost of common stock would be

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