Financial management Archives - MCQ and Quiz for Exams

1. Beta which is estimated as regression slope coefficient is classified as

historical beta

market beta

coefficient beta

risky beta

Detailed SolutionBeta which is estimated as regression slope coefficient is classified as

2. Which of the following is not incorporated in Capital Budgeting?

Tax-Effect

Time Value of Money

Required Rate of Return

Rate of Cash Discount

Detailed SolutionWhich of the following is not incorporated in Capital Budgeting?

3. An attitude of investor towards dealing with risk determines the

rate of return

rate of exchange

rate of intrinsic stock

rate of extrinsic stock

Detailed SolutionAn attitude of investor towards dealing with risk determines the

4. A measure which is not included in Fama French Three-Factor model is

realized risk free rate

rate of return on market

random error

risk premium

Detailed SolutionA measure which is not included in Fama French Three-Factor model is

5. The growth in book value per share shows the_____________.

rise in share price

increase in physical asset of the firm

increase in net worth

growth in reserves

Detailed SolutionThe growth in book value per share shows the_____________.

6. A computerized trading network that matches buy and sell orders electronically entered by customers is a___________.

national markets system

electronic communications networks

internet investment service

global investment network.

Detailed SolutionA computerized trading network that matches buy and sell orders electronically entered by customers is a___________.

7. In independent projects evaluation, results of internal rate of return and net present value lead to

cash flow decision

cost decision

same decisions

different decisions

Detailed SolutionIn independent projects evaluation, results of internal rate of return and net present value lead to

8. Second factor in Fama French three factor model is the

size of industry

size of market

size of company

size of portfolio

Detailed SolutionSecond factor in Fama French three factor model is the

9. Bond which is offered below its face value is classified as

present value bond

original issue discount bond

coupon issued bond

discounted bond

Detailed SolutionBond which is offered below its face value is classified as

10. Net income and depreciation is Rs 313,650,000 and common shares outstanding are 55,000,000 then cash flow per share would be

Rs 5.70

Rs 6.70

Rs 7.70

Rs 8.70

Detailed SolutionNet income and depreciation is Rs 313,650,000 and common shares outstanding are 55,000,000 then cash flow per share would be

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