Financial management Archives - Page 11 of 112 - MCQ and Quiz for Exams

101. The most popular type of Investment Company is a ________.

unit investment trust

mutual fund

closed-end investment company

real estate investment trust

Detailed SolutionThe most popular type of Investment Company is a ________.

102. An interest rate which is paid by firm as soon as it issues debt is classified as pre-tax

term structure

market premium

risk premium

cost of debt

Detailed SolutionAn interest rate which is paid by firm as soon as it issues debt is classified as pre-tax

103. If stock has a great risk related to it than a required return is

higher

lower

zero

all of above

Detailed SolutionIf stock has a great risk related to it than a required return is

104. Under the P/E model, stock price is a product of_____________.

EPS and DPS

P/E ratio and EPS

EPS and required return

P/E ratio and required return

Detailed SolutionUnder the P/E model, stock price is a product of_____________.

105. Double declining balance method and sum of years digits are included in

yearly method

single methods

double methods

accelerated methods

Detailed SolutionDouble declining balance method and sum of years digits are included in

106. According to Black Scholes model, short term seller receives today price which

short term cash proceeds

proceeds in cheques

full cash proceeds

zero proceeds

Detailed SolutionAccording to Black Scholes model, short term seller receives today price which

107. An inflation rate includes in bond’s interest rates is one which is inflation rate

at bond issuance

expected in future

expected at time of maturity

expected at deferred call

Detailed SolutionAn inflation rate includes in bond’s interest rates is one which is inflation rate

108. Dividend per share is Rs 15 and sell it for Rs 120 and floatation cost is Rs 3.0 then component cost of preferred stock will be

12.82 times

0.1282 times

12.82%

Rs 12.82

Detailed SolutionDividend per share is Rs 15 and sell it for Rs 120 and floatation cost is Rs 3.0 then component cost of preferred stock will be

109. In market analysis, market multiple is multiplied by firm earning before interest, taxes, depreciation and amortization to calculate

market total value

firm total value

industry value

taxes value

Detailed SolutionIn market analysis, market multiple is multiplied by firm earning before interest, taxes, depreciation and amortization to calculate

110. Receivables Management deals with:

Receipts of raw materials

Debtors collection

Creditors management

Inventory management

Detailed SolutionReceivables Management deals with:

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