[amp_mcq option1=”last month option price” option2=”last year option price” option3=”current option price” option4=”future option price” correct=”option3″]
Financial management
12. For each component of capital, a required rate of return is considered as
[amp_mcq option1=”component cost” option2=”evaluating cost” option3=”asset cost” option4=”asset depreciation value” correct=”option1″]
Detailed SolutionFor each component of capital, a required rate of return is considered as
13. _____________is concerned with the interrelationships between security returns.
[amp_mcq option1=”random diversification” option2=”correlating diversification” option3=”Friedman diversification” option4=”Markowitz diversification” correct=”option1″]
Detailed Solution_____________is concerned with the interrelationships between security returns.
14. Capital Budgeting deals with:
[amp_mcq option1=”Long-term Decisions” option2=”Short-term Decisions” option3=”Both A and B” option4=”Neither A nor B” correct=”option1″]
15. When most people refer to the mean, they are referring to the______________.
[amp_mcq option1=”median” option2=”arithmetic mean” option3=”geometric mean” option4=”cumulative mean” correct=”option1″]
Detailed SolutionWhen most people refer to the mean, they are referring to the______________.
16. An uncovered cost at start of year is Rs 300, full cash flow during recovery year is Rs 650 and prior years to full recovery is 4 then payback would be
[amp_mcq option1=”3.46 years” option2=”2.46 years” option3=”5.46 years” option4=”4.46 years” correct=”option1″]
17. Shareholder wealth in a firm is represented by___________.
[amp_mcq option1=”the number of people employed in the firm” option2=”the book value of the firm’s assets less the book value of its liabilities” option3=”the amount of salary paid to its employees” option4=”the market price per share of the firms common stock” correct=”option4″]
Detailed SolutionShareholder wealth in a firm is represented by___________.
18. Stock issued by company have higher rate of return because of
[amp_mcq option1=”low market to book ratio” option2=”high book to market ratio” option3=”high market to book ratio” option4=”low book to market ratio” correct=”option1″]
Detailed SolutionStock issued by company have higher rate of return because of
19. An example of a derivative security is ______.
[amp_mcq option1=”a common share of General Motors” option2=”a call option on Mobil stock” option3=”a commodity futures contract” option4=”B and C” correct=”option4″]
Detailed SolutionAn example of a derivative security is ______.
20. If coupon rate is equal to going rate of interest then bond will be sold
[amp_mcq option1=”at par value” option2=”below its par value” option3=”more than its par value” option4=”seasoned par value” correct=”option1″]
Detailed SolutionIf coupon rate is equal to going rate of interest then bond will be sold