Financial management

[amp_mcq option1=”ke = r” option2=”ke < r" option3="ke > r” option4=”ke = 0″ correct=”option1″]

Detailed SolutionWalter’s Model suggests for 100% DP Ratio when:

[amp_mcq option1=”weighted average cost of interest” option2=”weighted average cost of capital” option3=”weighted average salvage value” option4=”mean cost of capital” correct=”option2″]

Detailed SolutionRate of return which is required to satisfy stockholders and debt holders is classified as

[amp_mcq option1=”the same as market value” option2=”a more accurate valuation technique than the dividend models” option3=”the accounting value of the firm as reflected in the financial statements” option4=”the same as liquidation value” correct=”option3″]

Detailed SolutionBook value is_______________.

[amp_mcq option1=”The dividend paid on the equity capital” option2=”The weighted average of the cost of various long-term and short-term sources of finance” option3=”The average rate of return it must earn on its investments to satisfy the various investors” option4=”The minimum rate of return it must earn on its investments to keep its investors satisfied” correct=”option2″]

Detailed SolutionThe cost of capital of a firm is ______________.

[amp_mcq option1=”component cost is used” option2=”common stock value is used” option3=”cost of capital is used” option4=”asset valuation is used” correct=”option3″]

Detailed SolutionCapital budgeting decisions are analyzed with help of weighted average and for this purpose

[amp_mcq option1=”Rs 13,000.00″ option2=”-Rs 3,000.00″ option3=”Rs 3,000.00″ option4=”-Rs 13,000.00″ correct=”option1″]

Detailed SolutionNet investment in operating capital is Rs 5000 and net operating profit after taxes is Rs 8000 then free cash flow would be

[amp_mcq option1=”Investment decision” option2=”Financing decision” option3=”Dividend decision” option4=”None of the above” correct=”option1″]

Detailed SolutionFor a lesser, a lease is a:

[amp_mcq option1=”bonds equity” option2=”common shares” option3=”common stock” option4=”preferred stock” correct=”option4″]

Detailed SolutionType of stock which have characteristics of bonds and common stock is classified as

[amp_mcq option1=”Securitization” option2=”Factoring” option3=”Pledging” option4=”None of the above” correct=”option2″]

Detailed SolutionIf a company sells its receivable to another party to raise funds, it is known as:

[amp_mcq option1=”Unit investment trusts” option2=”Closed-end investment companies” option3=”Open-end investment companies” option4=”All trade on stock exchanges” correct=”option4″]

Detailed SolutionWhich of the following generally traded on stock exchanges?