[amp_mcq option1=”coefficient of standard” option2=”coefficient of return” option3=”coefficient of variation” option4=”coefficient of deviation” correct=”option3″]
Detailed SolutionRisk per unit of return or stand alone risk is represented by
Financial management
12. The use of preference share capital as against debt finance.
[amp_mcq option1=”Reduces DFL” option2=”Increases DFL” option3=”Increases financial risk” option4=”Both a and b” correct=”option1″]
Detailed SolutionThe use of preference share capital as against debt finance.
13. Free cash flow is Rs 17000 and net investment in operating capital is Rs 10000 then net operating profit after taxes would be
[amp_mcq option1=”Rs 7,000.00″ option2=”Rs 27,000.00″ option3=”-Rs 27,000.00″ option4=”-Rs 7,000.00″ correct=”option1″]
14. Standard deviation of tighter probability distribution is
[amp_mcq option1=”long-termed” option2=”short-termed” option3=”risky” option4=”smaller” correct=”option4″]
Detailed SolutionStandard deviation of tighter probability distribution is
15. Portfolio risk is best measured by the______________.
[amp_mcq option1=”expected value” option2=”portfolio beta” option3=”weighted average of individual risk” option4=”standard deviation” correct=”option4″]
Detailed SolutionPortfolio risk is best measured by the______________.
16. Weighted Average Cost of Capital is generally denoted
[amp_mcq option1=”kA” option2=”kW” option3=”k0″ option4=”kC” correct=”option1″]
Detailed SolutionWeighted Average Cost of Capital is generally denoted
17. Stock split is a form of:
[amp_mcq option1=”Dividend payment” option2=”Bonus issue” option3=”Financial restructuring” option4=”Dividend in kind” correct=”option2″]
18. Every company should follow:
[amp_mcq option1=”High Dividend Payment” option2=”Low Dividend Payment” option3=”Stable Dividend Payment” option4=”Fixed Dividend Payment” correct=”option3″]
19. A model in which behavior of asset returns is measured for set of risk factors and market risk is classified as
[amp_mcq option1=”factorization model” option2=”Two factor model” option3=”multifactor model” option4=”quoted factor model” correct=”option3″]
20. Cash and equivalents, inventories and accounts receivables are classified as
[amp_mcq option1=”assets on balance sheet” option2=”liabilities on balance sheet” option3=”earnings on income statement” option4=”payments on income statement” correct=”option1″]
Detailed SolutionCash and equivalents, inventories and accounts receivables are classified as