[amp_mcq option1=”discount rate” option2=”transaction costs” option3=”no transaction costs” option4=”no discounts” correct=”option2″]
Detailed SolutionAccording to Black Scholes model, selling and buying of stock have
Financial management
12. A line which shows relationship between an expected return and risk on efficient portfolio is considered as
[amp_mcq option1=”efficient market line” option2=”attributable market line” option3=”capital market line” option4=”security market line” correct=”option3″]
13. The return component that gives periodic cash flows to the investor is known as the______________.
[amp_mcq option1=”capital gain” option2=”interest rate” option3=”yield” option4=”unrealized gain.” correct=”option3″]
14. Present value of future cash flows is Rs 4150 and an initial cost is Rs 1300 then profitability index will be
[amp_mcq option1=”3.00%” option2=”3.19″ option3=”0.31 times” option4=”Rs 5,450.00″ correct=”option2″]
15. A retirement plans funded for workers by corporations, administered and commercial banks are classified as
[amp_mcq option1=”retirement funds” option2=”pension funds” option3=”future funds” option4=”workers funds” correct=”option1″]
16. ______________ is the distribution of the profits of a company among its shareholders.
[amp_mcq option1=”Shares” option2=”Interest” option3=”Dividend” option4=”Commission” correct=”option3″]
17. Which of the following is not a capital budgeting decision?
[amp_mcq option1=”Expansion Programme” option2=”Merger” option3=”Replacement of an Asset” option4=”Inventory Level” correct=”option4″]
Detailed SolutionWhich of the following is not a capital budgeting decision?
18. Operating leverage examines.
[amp_mcq option1=”The effect of the change in the quantity on EBIT” option2=”The effect of the change in EBIT on the EPS of the company” option3=”The effect of the change in output to the EPS of the company” option4=”The effect of change in EPS on the output of the company” correct=”option2″]
19. Money Discount Rate if equal to:
[amp_mcq option1=”(1 + Inflation Rate) (1 + Real Rate) – 1″ option2=”(1 + Inflation Rate) 4 – (1 + Real Rate) – 1″ option3=”(1 + Real Rate) 4 – (1 + Inflation Rate) – 1″ option4=”(1 + Real Rate) + (1 + Inflation Rate) – 1″ correct=”option1″]
20. Discounted cash flow analysis is also classified as
[amp_mcq option1=”time value of stock” option2=”time value of money” option3=”time value of bonds” option4=”time value of treasury bonds” correct=”option3″]
Detailed SolutionDiscounted cash flow analysis is also classified as