cash equivalents
long-term investments
inventories
short-term investments
Answer is Right!
Answer is Wrong!
Financial management
122. Degree of financial leverage is a measure of relationship between ___________.
EPS and EBIT
EBIT and quantity produced
EPS and quantity produced
EPS and sales
Answer is Right!
Answer is Wrong!
Detailed SolutionDegree of financial leverage is a measure of relationship between ___________.
123. One way to obtain earnings forecasts is the mechanical procedure known as___________.
cross-reference analysis
exponential trending
time series analysis
data mining
Answer is Right!
Answer is Wrong!
124. Cost of Equity Share Capital is more than cost of debt because:
Face value of debentures is more than face value of shares
Equity shares have higher risk than debt
Equity shares are easily saleable
All of the three above
Answer is Right!
Answer is Wrong!
Detailed SolutionCost of Equity Share Capital is more than cost of debt because:
125. Slope coefficient of beta is classified statistically significant if its probability is
greater than 5%
equal to 5%
less than 5%
less than 2%
Answer is Right!
Answer is Wrong!
126. Variability of stock price, option term to maturity and risk free rate are dependents of
price of an option
expiry of an option
exercise of an option
estimation of an option
Answer is Right!
Answer is Wrong!
127. In alternative investments, constant cash flow stream is equal to initial cash flow stream in approach which is classified as
greater annual annuity method
equivalent annual annuity
lesser annual annuity method
zero annual annuity method
Answer is Right!
Answer is Wrong!
128. If no information is available, the General Rule for valuation of stock for balance sheet is:
Replacement Cost
Realizable Value
Historical Cost
Standard Cost
Answer is Right!
Answer is Wrong!
129. According to Black Scholes model, rate which is constant and known is classified as
short term return rate
long term return rate
risk free interest rate
risky rate of return
Answer is Right!
Answer is Wrong!
Detailed SolutionAccording to Black Scholes model, rate which is constant and known is classified as
130. An increase in marginal cost of capital and capital rationing are two arising complications of
maximum capital budget
greater capital budget
optimal capital budget
minimum capital budget
Answer is Right!
Answer is Wrong!