Financial management

11. Risk per unit of return or stand alone risk is represented by

coefficient of standard
coefficient of return
coefficient of variation
coefficient of deviation

Detailed SolutionRisk per unit of return or stand alone risk is represented by

12. The use of preference share capital as against debt finance.

Reduces DFL
Increases DFL
Increases financial risk
Both a and b

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

Rs 7,000.00
Rs 27,000.00
-Rs 27,000.00
-Rs 7,000.00

Detailed SolutionFree cash flow is Rs 17000 and net investment in operating capital is Rs 10000 then net operating profit after taxes would be

14. Standard deviation of tighter probability distribution is

long-termed
short-termed
risky
smaller

Detailed SolutionStandard deviation of tighter probability distribution is

15. Portfolio risk is best measured by the______________.

expected value
portfolio beta
weighted average of individual risk
standard deviation

Detailed SolutionPortfolio risk is best measured by the______________.

16. Weighted Average Cost of Capital is generally denoted

kA
kW
k0
kC

Detailed SolutionWeighted Average Cost of Capital is generally denoted

17. Stock split is a form of:

Dividend payment
Bonus issue
Financial restructuring
Dividend in kind

Detailed SolutionStock split is a form of:

18. Every company should follow:

High Dividend Payment
Low Dividend Payment
Stable Dividend Payment
Fixed Dividend Payment

Detailed SolutionEvery company should follow:

19. A model in which behavior of asset returns is measured for set of risk factors and market risk is classified as

factorization model
Two factor model
multifactor model
quoted factor model

Detailed SolutionA model in which behavior of asset returns is measured for set of risk factors and market risk is classified as

20. Cash and equivalents, inventories and accounts receivables are classified as

assets on balance sheet
liabilities on balance sheet
earnings on income statement
payments on income statement

Detailed SolutionCash and equivalents, inventories and accounts receivables are classified as

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