Financial management

[amp_mcq option1=”dividend decisions” option2=”working capital decisions” option3=”capital budgeting decisions” option4=”trade-off between cost and risk” correct=”option3″]

Detailed SolutionThe market value of the firm is the result of __________.

[amp_mcq option1=”Rs 10,000.00″ option2=”Rs 8,000.00″ option3=”Rs 0.00″ option4=”none of above” correct=”option3″]

Detailed SolutionAn investment outlay cash flow is Rs 4000, operating cash flow is Rs 1000 and salvage cash flow is Rs 5000 then free cash flow would be

[amp_mcq option1=”Rs 1,290.10″ option2=”Rs 1,292.10″ option3=”Rs 1,295.10″ option4=”Rs 1,297.10″ correct=”option1″]

Detailed SolutionIf security pays Rs 5,000 in 20 years with 7% annual interest rate, PV of security by using formula is

[amp_mcq option1=”minimum life” option2=”present value life” option3=”economic life” option4=”transaction life” correct=”option3″]

Detailed SolutionLife that maximizes net present value of an asset is classified as

[amp_mcq option1=”Preparation of projected statements” option2=”Preparation of actual statements” option3=”Comparison of actual with projected” option4=”Ordering the employees that projected figures come true” correct=”option3″]

Detailed SolutionProcess of Financial Planning ends with:

[amp_mcq option1=”less than expected yield on dividend” option2=”greater than expected yield on dividend” option3=”equal to expected yield on dividend” option4=”equal to one” correct=”option2″]

Detailed SolutionIn expected rate of return for constant growth, an expected total rate of return must be

[amp_mcq option1=”Rs 99.49″ option2=”Rs 318.25″ option3=”Rs 315.25″ option4=”Rs 331.01″ correct=”option4″]

Detailed SolutionFuture value of annuity FVA(due) is, if deposited value is Rs 100 and earn 5% every year of total three years will be

[amp_mcq option1=”dividends are paid at the end of the year” option2=”dividends is legally binding on the corporation” option3=”unpaid dividends will be paid in the future” option4=”unpaid dividends are never repaid” correct=”option3″]

Detailed SolutionIf a preferred stock issue is cumulative, this means____________.

[amp_mcq option1=”Helps in project selection” option2=”Helps in project financing” option3=”Helps in project location” option4=”All of the above” correct=”option4″]

Detailed SolutionWhich of the following is not true for a Lease decision for the lessee?

[amp_mcq option1=”-Rs 700.00″ option2=”Rs 2,100.00″ option3=”Rs 700.00″ option4=”Rs 2,000.00″ correct=”option2″]

Detailed SolutionCurrent option is Rs 700 and current value of stock in portfolio is Rs 1400 then present value of portfolio will be