[amp_mcq option1=”available income” option2=”cash income” option3=”free cash flows” option4=”free distribution” correct=”option3″]
Financial management
2. The sustainable growth rate of a firm can be calculated as the product of the_________.
[amp_mcq option1=”return on assets and the return on equity” option2=”dividend payout ratio and leverage” option3=”retention rate and the return on equity” option4=”net profit margin and total sales” correct=”option3″]
3. Redemption option which protects investors against rise in interest rate is considered as
[amp_mcq option1=”redeemable at deferred” option2=”redeemable at par” option3=”redeemable at refund” option4=”redeemable at finding” correct=”option3″]
4. Falling interest rate leads change to bondholder income which is
[amp_mcq option1=”reduction in income” option2=”increment in income” option3=”matured income” option4=”frequent income” correct=”option1″]
Detailed SolutionFalling interest rate leads change to bondholder income which is
5. Expected capital gain is Rs 20 and expected final price is Rs 50 then original investment will be
[amp_mcq option1=”Rs 30.00″ option2=”-Rs 30.00″ option3=”Rs 70.00″ option4=”-Rs 70.00″ correct=”option1″]
6. Financial Leverage arises because of:
[amp_mcq option1=”Fixed cost of production” option2=”Variable cost” option3=”Interest cost” option4=”None of the above” correct=”option3″]
7. Historical growth rates, analysis forecasts and retention growth model are approaches to estimate
[amp_mcq option1=”present value of gain” option2=”growth rate” option3=”growth gain” option4=”discounted gain” correct=”option2″]
8. Sales revenue Rs 90,000, operating taxes Rs 30,000 and operating capital Rs 15,000 then value of free cash flows will be
[amp_mcq option1=”Rs 45,000.00″ option2=”Rs 13,500.00″ option3=”Rs 65,000.00″ option4=”Rs 75,000.00″ correct=”option1″]
9. Total common equity divided by common shares outstanding which is used to calculate
[amp_mcq option1=”book value of share” option2=”market value of shares” option3=”earning per share” option4=”dividends per share” correct=”option1″]
Detailed SolutionTotal common equity divided by common shares outstanding which is used to calculate
10. Coupon payment is calculated with help of interest rate, then this rate considers as
[amp_mcq option1=”payment interest” option2=”par interest” option3=”coupon interest” option4=”yearly interest rate” correct=”option3″]