Financial management Archives - MCQ and Quiz for Exams

1. An interest rate which is used in calculation of cash flows of bonds is called

required rate of redemption

required rate of earning

required rate of return

required option

Detailed SolutionAn interest rate which is used in calculation of cash flows of bonds is called

2. A Current Ratio of less than one means:

Fixed Assets > Current Assets

Share Capital > Current Assets

Detailed SolutionA Current Ratio of less than one means:

3. Value of stock is Rs 1200 and preferred dividend is Rs 120 then required rate of return would be

Rs 144,000.00

10.00%

Rs 10.00

0.2 times

Detailed SolutionValue of stock is Rs 1200 and preferred dividend is Rs 120 then required rate of return would be

4. Which of the following is incorrect for NOI?

k0 is constant

kd is constant

ke is constant

kd & k0 are constant

Detailed SolutionWhich of the following is incorrect for NOI?

5. Rate of return which considers riskiness and an available returns on investments is classified as

constant dividend

constant rate

maximum rate of return

minimum acceptable rate of return

Detailed SolutionRate of return which considers riskiness and an available returns on investments is classified as

6. Cost of issuing new shares to the public is known as:

Cost of Equity

Cost of Capital

Flotation Cost

Marginal Cost of Capital

Detailed SolutionCost of issuing new shares to the public is known as:

7. Profit margin multiply assets turnover multiply equity multiplier is used to calculate

return on turnover

return on stock

return on assets

return on equity

Detailed SolutionProfit margin multiply assets turnover multiply equity multiplier is used to calculate

8. According to the traditional approach cost of capital affected by?

debt-equity mix

debt-capital mix

equity expenses mix

debt-interest mix

Detailed SolutionAccording to the traditional approach cost of capital affected by?

9. In an option pricing, a rises in risk free rate results in option’s value

slight time decreases

slight increases

slight decreases

slight time increases

Detailed SolutionIn an option pricing, a rises in risk free rate results in option’s value

10. In calculation of time, value of money, ”N ”represents

number of payment periods

number of investment

number of instalments

number of premium received

Detailed SolutionIn calculation of time, value of money, ”N ”represents

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