[amp_mcq option1=”7%” option2=”5%” option3=”5.70%” option4=”6.25%” correct=”option1″]
Financial management
2. Cost of money is affected by factors which includes
[amp_mcq option1=”production opportunities” option2=”risk” option3=”all of above” option4=”inflation” correct=”option3″]
Detailed SolutionCost of money is affected by factors which includes
3. Cost of capital is the ______ rate of return expected by the investor.
[amp_mcq option1=”minimum” option2=”maximum” option3=”expected” option4=”marginal” correct=”option3″]
Detailed SolutionCost of capital is the ______ rate of return expected by the investor.
4. Current option price is added to present value of portfolio for calculating
[amp_mcq option1=”future value of portfolio” option2=”current value of stock” option3=”future value of stock” option4=”present value of portfolio” correct=”option4″]
Detailed SolutionCurrent option price is added to present value of portfolio for calculating
5. Which is the most expensive source of funds?
[amp_mcq option1=”New Equity Shares” option2=”New Preference Shares” option3=”New Debts” option4=”Retained Earnings” correct=”option1″]
Detailed SolutionWhich is the most expensive source of funds?
6. Securities future value is Rs 1,000,000 and present value of securities is Rs 500,000 with an interest rate of 4.5%, ‘N’ will be
[amp_mcq option1=”16.7473 years” option2=”0.0304 months” option3=”15.7473 years” option4=”0.7575 years” correct=”option1″]
7. Which of the following characteristics are true, with reference to preference capital?
[amp_mcq option1=”Preference dividend is not tax deductible” option2=”The claim of preference shareholders is prior to the claim of equity shareholders” option3=”Preference shareholders are not the owners of the concern” option4=”All of the above” correct=”option4″]
8. Weighted average of probabilities is classified as
[amp_mcq option1=”average rate of return” option2=”expected rate of return” option3=”past rate of return” option4=”weighted rate of return” correct=”option2″]
Detailed SolutionWeighted average of probabilities is classified as
9. Bad debt cost is not borne by factor in case of:
[amp_mcq option1=”Pure Factoring” option2=”Without Recourse Factoring” option3=”With Recourse Factoring” option4=”None of the above” correct=”option2″]
Detailed SolutionBad debt cost is not borne by factor in case of:
10. Left side of balance sheet states the
[amp_mcq option1=”appreciated earnings” option2=”liabilities” option3=”assets” option4=”stocks earnings” correct=”option3″]