[amp_mcq option1=”bond value” option2=”per value” option3=”state value” option4=”par value” correct=”option4″]
Financial management
2. The constant growth model of equity valuation assumes that _____________.
[amp_mcq option1=”the dividends paid by the company remain constant” option2=”the dividends paid by the company grow at a constant rate of growth” option3=”the cost of equity may be less than or equal to the growth rate” option4=”the growth rate is less than the cost of equity.” correct=”option2″]
Detailed SolutionThe constant growth model of equity valuation assumes that _____________.
3. Procedure of finding present values in time value of money is classified as
[amp_mcq option1=”compounding” option2=”discounting” option3=”money value” option4=”stock value” correct=”option2″]
Detailed SolutionProcedure of finding present values in time value of money is classified as
4. Which of the following is the expression for operating leverage?
[amp_mcq option1=”Contribution/EBIT” option2=”EBT/Contribution” option3=”Contribution/EAT” option4=”Contribution/Quantity” correct=”option1″]
Detailed SolutionWhich of the following is the expression for operating leverage?
5. Which of the following is not an objective of financial management?
[amp_mcq option1=”Maximization of wealth of shareholders” option2=”Maximization of profits” option3=”Mobilization of funds at an acceptable cost” option4=”Ensuring discipline in the organization.” correct=”option4″]
Detailed SolutionWhich of the following is not an objective of financial management?
6. An annual interest payment divided by current price of bond is considered as
[amp_mcq option1=”current yield” option2=”maturity yield” option3=”return yield” option4=”earning yield” correct=”option1″]
Detailed SolutionAn annual interest payment divided by current price of bond is considered as
7. Ownership securities are represented by _______.
[amp_mcq option1=”stock” option2=”loan” option3=”debt” option4=”debentures” correct=”option1″]
Detailed SolutionOwnership securities are represented by _______.
8. Which of the following is not a standard method of inventory valuation?
[amp_mcq option1=”First in First out” option2=”Standard Cost” option3=”Average Pricing” option4=”Realizable Value” correct=”option4″]
Detailed SolutionWhich of the following is not a standard method of inventory valuation?
9. Risk lover’s utility curves have __________.
[amp_mcq option1=”Positive slope” option2=”Negative slope” option3=”Convex to the origin” option4=”Negative slope and convex to the origin” correct=”option1″]
Detailed SolutionRisk lover’s utility curves have __________.
10. Operating leverage measures ____________.
[amp_mcq option1=”business risk” option2=”financial risk” option3=”both risks” option4=”production risk” correct=”option1″]