Financial management

11. Greater value of option, larger span of time value is usually results in

shorter call option
longer call option
longer put option
shorter put option

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is usually results in" class="read-more button" href="https://exam.pscnotes.com/mcq/greater-value-of-option-larger-span-of-time-value-is-usually-results-in/#more-53056">Detailed SolutionGreater value of option, larger span of time value is usually results in

12. If the dispersion around a security’s return is larger ____________.

the expected return is smaller
the standard deviation is smaller
the stock's price is higher
the security's risk is higher

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____________." class="read-more button" href="https://exam.pscnotes.com/mcq/if-the-dispersion-around-a-securitys-return-is-larger-____________/#more-53043">Detailed SolutionIf the dispersion around a security’s return is larger ____________.

13. Required rate of return in calculating bond’s cash flow is also classified as

going rate of return
yield
earning rate
Both A and B

Detailed

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448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z"/> Subscribe on YouTube
SolutionRequired rate of return in calculating bond’s cash flow is also classified as

14. In large expansion programs, increased riskiness and floatation cost associated with project can cause

rise in marginal cost of capital
fall in marginal cost of capital
rise in transaction cost of capital

Detailed SolutionIn large expansion programs, increased riskiness and floatation cost associated with project can cause

15. Low price for earning ratio is result of

low risky firms
high risky firms
low dividends paid
high marginal rate

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42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z"/> Subscribe on YouTube result of" class="read-more button" href="https://exam.pscnotes.com/mcq/low-price-for-earning-ratio-is-result-of/#more-53010">Detailed SolutionLow price for earning ratio is result of

16. Real interest rate and real cash flows do not include

equity effects
debt effects
inflation effects
opportunity effects

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81.2-142.7 81.2z"/> Subscribe on YouTube button" href="https://exam.pscnotes.com/mcq/real-interest-rate-and-real-cash-flows-do-not-include/#more-52994">Detailed SolutionReal interest rate and real cash flows do not include

17. At last day when European and American option can be exercised is classified as

European date
American date
expiration date
money date

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class="youtube-subscribe-button"> Subscribe on YouTube class="read-more button" href="https://exam.pscnotes.com/mcq/at-last-day-when-european-and-american-option-can-be-exercised-is-classified-as/#more-52950">Detailed SolutionAt last day when European and American option can be exercised is classified as

18. A method of inventory recording which produces high inventories in balance sheet is classified as

First out receivable
First in first out
Last in first out
last out receivable

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213.5V175.2l142.7 81.2-142.7 81.2z"/> Subscribe on YouTube in balance sheet is classified as" class="read-more button" href="https://exam.pscnotes.com/mcq/a-method-of-inventory-recording-which-produces-high-inventories-in-balance-sheet-is-classified-as/#more-52930">Detailed SolutionA method of inventory recording which produces high inventories in balance sheet is classified as

19. According to put call parity relationship, a call option minus put option in addition with present value of exercise is equal to

binomial property
constant property
constant and variable property
stock

Detailed SolutionAccording to put call parity relationship, a call option minus

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put option in addition with present value of exercise is equal to

20. Cash flow which is available for all investors of company is classified as

extrinsic stock
intrinsic stock
investing cash
free cash flow

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company is classified as" class="read-more button" href="https://exam.pscnotes.com/mcq/cash-flow-which-is-available-for-all-investors-of-company-is-classified-as/#more-52903">Detailed SolutionCash flow which is available for all investors of company is classified as

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