option lattice
pricing movement
price change
binomial lattice
Answer is Right!
Answer is Wrong!
Detailed SolutionMovement of price or rise or fall of prices of options is classified as
Financial management
112. Altering the leverage ratio does not influence the market value of the firm. This is the basic premise of _______.
net income approach
traditional approach
modern approach
net operating income approach
Answer is Right!
Answer is Wrong!
113. Capital gain is Rs 2 and beginning price is Rs 24 then capital gains yield will be
22.00%
24.00%
14.00%
12.00%
Answer is Right!
Answer is Wrong!
Detailed SolutionCapital gain is Rs 2 and beginning price is Rs 24 then capital gains yield will be
114. Mutual funds may be affiliated with an underwriter. This means____________.
the underwriter has an exclusive right to distribute shares
the underwriter selects the securities in the portfolio
there is no risk to the issuer of the mutual fund
there is no risk to the investor of the mutual fund.
Answer is Right!
Answer is Wrong!
Detailed SolutionMutual funds may be affiliated with an underwriter. This means____________.
115. Greater chance of lower actual return than expected return and greater variation is indicated by
smaller standard deviation
larger standard deviation
smaller variance
larger variance
Answer is Right!
Answer is Wrong!
116. Values recorded as determined in marketplace are considered as
market values
book values
appreciated values
depreciated values
Answer is Right!
Answer is Wrong!
Detailed SolutionValues recorded as determined in marketplace are considered as
117. A firm has EBIT of Rs. 50,000. Market value of debt is Rs. 80,000 and overall capitalization rate is 20%. Market value of firm under NOI Approach is:
Rs. 2,50,000
Rs. 1,70,000
Rs. 30,000
Rs. 1,30,000
Answer is Right!
Answer is Wrong!
118. An increase in value of option leads to low present value of exercise cost only if it has
low volatility
interest rates are high
interest rates are low
high volatility
Answer is Right!
Answer is Wrong!
119. An earning of business which is available for free distribution to all stockholders and creditors is classified as
free cash flows
free distribution
available income
cash income
Answer is Right!
Answer is Wrong!
120. A markets which deals with long-term corporate stocks are classified as
liquid markets
short-term markets
capital markets
money markets
Answer is Right!
Answer is Wrong!
Detailed SolutionA markets which deals with long-term corporate stocks are classified as