Financial management Archives - MCQ and Quiz for Exams

1. A type of project whose cash flows would not depend on each other is classified as

project net gain

independent projects

dependent projects

net value projects

Detailed SolutionA type of project whose cash flows would not depend on each other is classified as

2. Constant Dividend Per Share’ Policy is considered as:

Increasing Dividend Policy

Decreasing Dividend Policy

Stable Dividend Policy

None of the above

Detailed SolutionConstant Dividend Per Share’ Policy is considered as:

3. Firm’s which helps in indirect transfer such as Merrill Lynch is classified as

investment banking house

investment bank

saving house

saving bank

Detailed SolutionFirm’s which helps in indirect transfer such as Merrill Lynch is classified as

4. Cash Budget does not include:

Dividend Payable

Postal Expenditure

Issue of Capital

Total Sales Figure

Detailed SolutionCash Budget does not include:

5. Insufficient working capital results in __________.

Block of cash

Loosing interests

Lack of production

Lack of smooth flow of production

Detailed SolutionInsufficient working capital results in __________.

6. Value of stock is Rs 300 and preferred dividend is Rs 60 then required rate of return would be

18%

20%

22%

24%

Detailed SolutionValue of stock is Rs 300 and preferred dividend is Rs 60 then required rate of return would be

7. ________ decision relates to the determination of total amount of assets to be held in the firm.

Financing

Investment

Dividend

Controlling

Detailed Solution________ decision relates to the determination of total amount of assets to be held in the firm.

8. If deposited money Rs 10,000 in bank pays interest 10% annually, an amount after five years will be

Rs 16,105.14

Rs 16,110.14

Rs 16,115.14

Rs 16,505.14

Detailed SolutionIf deposited money Rs 10,000 in bank pays interest 10% annually, an amount after five years will be

9. Financial Planning deals with:

Preparation of Financial Statements

Planning for a Capital Issue

Preparing Budgets

All of the above

Detailed SolutionFinancial Planning deals with:

10. Stock selling price is Rs 35, expected dividend is Rs 5 and expected growth rate is 8% then cost of common stock would be

40.00%

22.29%

14.28%

80.00%

Detailed SolutionStock selling price is Rs 35, expected dividend is Rs 5 and expected growth rate is 8% then cost of common stock would be

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