Financial management Archives - MCQ and Quiz for Exams

1. Company low earning power and high interest cost cause financial changes which have

high return on equity

high return on assets

low return on assets

low return on equity

Detailed SolutionCompany low earning power and high interest cost cause financial changes which have

2. Financial security in which there is no default risk and issues by U.S governments is classified as

U.S treasury bonds

mortgages

municipal bonds

corporate bonds

Detailed SolutionFinancial security in which there is no default risk and issues by U.S governments is classified as

3. Which of the following assumes constant kd and kc?

Net Income Approach

Net Operating Income Approach

Traditional Approach

MM Model

Detailed SolutionWhich of the following assumes constant kd and kc?

4. In expected rate of return for constant growth, dividends are expected to grow but with the

constant rate

variable rate

yielding rate

returning yield

Detailed SolutionIn expected rate of return for constant growth, dividends are expected to grow but with the

5. What is Economic Order Quantity?

Cost of an order

Cost of stock

Re-order level

Optimum order size

Detailed SolutionWhat is Economic Order Quantity?

6. Capital Budgeting Decisions are based on:

Incremental Profit

Incremental Cash Flows

Incremental Assets

Incremental Capital

Detailed SolutionCapital Budgeting Decisions are based on:

7. A tighter probability distribution shows the

higher risk

lower risk

expected risk

peaked risk

Detailed SolutionA tighter probability distribution shows the

8. Purchase cost of assets over its useful life is classified as

appreciation

depreciation

appreciated assets

appreciated liabilities

Detailed SolutionPurchase cost of assets over its useful life is classified as

9. According to Markowitz, an efficient portfolio is one that has the_________________.

largest expected return for the smallest level of risk

largest expected return and zero risk

largest expected return for a given level of risk

smallest level of risk

Detailed SolutionAccording to Markowitz, an efficient portfolio is one that has the_________________.

10. Which of the following cost of capital require tax adjustment?

Cost of Equity Shares

Cost of Preference Shares

Cost of Debentures

Cost of Retained Earnings

Detailed SolutionWhich of the following cost of capital require tax adjustment?

Page 1 Page 2 Page 3 Page 4 Page 5

Test 1 Test 2 Test 3 Test 4 Test 5 Test 6 Test 7 Test 8 Test 9 Test 10 Test 11 Test 12 Test 13 Test 14 Test 15 Test 16 Test 17 Test 18 Test 19 Test 20 Test 21 Test 22 Test 23

Exit mobile version