[amp_mcq option1=”functional decreasing” option2=”constant” option3=”continuously growing” option4=”functional increasing” correct=”option2″]
Detailed SolutionIn expected rate of return for constant growth, an expected dividend yield must be
Financial management
12. Real risk-free rate is applicable when it is expected that there will be
[amp_mcq option1=”high inflation” option2=”low inflation” option3=”no inflation” option4=”none of above” correct=”option3″]
Detailed SolutionReal risk-free rate is applicable when it is expected that there will be
13. In MM-Model, irrelevance of capital structure is based on:
[amp_mcq option1=”Cost of Debt and Equity” option2=”Arbitrage Process” option3=”Decreasing k0″ option4=”All of the above” correct=”option4″]
Detailed SolutionIn MM-Model, irrelevance of capital structure is based on:
14. Credit Policy of a firm should involve a trade-off between increased:
[amp_mcq option1=”Sales and Increased Profit” option2=”Profit and Increased Costs of Receivables” option3=”Sales and Cost of goods sold” option4=”None of the above” correct=”option2″]
Detailed SolutionCredit Policy of a firm should involve a trade-off between increased:
15. Present value of portfolio is Rs 900 and current value of stock in portfolio is Rs 1500 then current option price would be
[amp_mcq option1=”Rs 2,400.00″ option2=”-Rs 600.00″ option3=”-Rs 2,400.00″ option4=”Rs 600.00″ correct=”option4″]
16. Tendency of people to blame failure on bad luck but given tribute of success to themselves is classified as
[amp_mcq option1=”self-attribution bias” option2=”self-success bias” option3=”self-failure bias” option4=”self-condition bias” correct=”option3″]
17. Which of the following is not a spontaneous source of short-term funds?
[amp_mcq option1=”Trade credit” option2=”Accrued expenses” option3=”Provision for dividend” option4=”All of the above” correct=”option3″]
Detailed SolutionWhich of the following is not a spontaneous source of short-term funds?
18. In capital asset pricing model, stock with high standard deviation tend to have
[amp_mcq option1=”low variation” option2=”low beta” option3=”high beta” option4=”high variation” correct=”option3″]
Detailed SolutionIn capital asset pricing model, stock with high standard deviation tend to have
19. Which of the following has the highest cost of capital?
[amp_mcq option1=”Equity shares” option2=”Loans” option3=”Bonds” option4=”Preference shares” correct=”option1″]
Detailed SolutionWhich of the following has the highest cost of capital?
20. Debt to Total Assets Ratio can be improved by:
[amp_mcq option1=”Borrowing More” option2=”Issue of Debentures” option3=”Issue of Equity Shares” option4=”Redemption of Debt” correct=”option4″]
Detailed SolutionDebt to Total Assets Ratio can be improved by: