Financial management

[amp_mcq option1=”option lattice” option2=”pricing movement” option3=”price change” option4=”binomial lattice” correct=”option3″]

Detailed SolutionMovement of price or rise or fall of prices of options is classified as

[amp_mcq option1=”net income approach” option2=”traditional approach” option3=”modern approach” option4=”net operating income approach” correct=”option2″]

Detailed SolutionAltering the leverage ratio does not influence the market value of the firm. This is the basic premise of _______.

[amp_mcq option1=”22.00%” option2=”24.00%” option3=”14.00%” option4=”12.00%” correct=”option3″]

Detailed SolutionCapital gain is Rs 2 and beginning price is Rs 24 then capital gains yield will be

[amp_mcq option1=”the underwriter has an exclusive right to distribute shares” option2=”the underwriter selects the securities in the portfolio” option3=”there is no risk to the issuer of the mutual fund” option4=”there is no risk to the investor of the mutual fund.” correct=”option1″]

Detailed SolutionMutual funds may be affiliated with an underwriter. This means____________.

[amp_mcq option1=”smaller standard deviation” option2=”larger standard deviation” option3=”smaller variance” option4=”larger variance” correct=”option2″]

Detailed SolutionGreater chance of lower actual return than expected return and greater variation is indicated by

[amp_mcq option1=”market values” option2=”book values” option3=”appreciated values” option4=”depreciated values” correct=”option1″]

Detailed SolutionValues recorded as determined in marketplace are considered as

[amp_mcq option1=”Rs. 2,50,000″ option2=”Rs. 1,70,000″ option3=”Rs. 30,000″ option4=”Rs. 1,30,000″ correct=”option1″]

Detailed SolutionA firm has EBIT of Rs. 50,000. Market value of debt is Rs. 80,000 and overall capitalization rate is 20%. Market value of firm under NOI Approach is:

[amp_mcq option1=”low volatility” option2=”interest rates are high” option3=”interest rates are low” option4=”high volatility” correct=”option4″]

Detailed SolutionAn increase in value of option leads to low present value of exercise cost only if it has

[amp_mcq option1=”free cash flows” option2=”free distribution” option3=”available income” option4=”cash income” correct=”option3″]

Detailed SolutionAn earning of business which is available for free distribution to all stockholders and creditors is classified as

[amp_mcq option1=”liquid markets” option2=”short-term markets” option3=”capital markets” option4=”money markets” correct=”option3″]

Detailed SolutionA markets which deals with long-term corporate stocks are classified as