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