Financial management

11. Type of stock in which dividends are tied to any particular part of a firm is classified as

dividend stock
firm part stock
tied stock
tracking stock

Detailed SolutionType of stock in which dividends are tied to any particular part of a firm is classified as

12. Price at which European and American options can be exercised is classified as

exercise price
strike price
horizon price
Both A and B

Detailed SolutionPrice at which European and American options can be exercised is classified as

13. Number of shares outstanding if it is divided by net income for using to calculate

earning per share
dividends per share
book value of share
market value of shares

Detailed SolutionNumber of shares outstanding if it is divided by net income for using to calculate

14. A fixed rate of _________ is payable on debentures

dividend
Commission
Interest
Brokerage

Detailed SolutionA fixed rate of _________ is payable on debentures

15. Project which is started by firm for increasing sales is classified as

new expansion project
old expanded project
firm borrowing project
product line selection

Detailed SolutionProject which is started by firm for increasing sales is classified as

16. The arbitrary process is the behavioral foundation for the ____________.

MM approach
XX approach
Gorder approach
Miller approach

Detailed SolutionThe arbitrary process is the behavioral foundation for the ____________.

17. Which of the following is not a relevant cost in Capital Budgeting?

Sunk Cost
Opportunity Cost
Allocated Overheads
Both A and C above

Detailed SolutionWhich of the following is not a relevant cost in Capital Budgeting?

18. A stock which is hybrid and works as a cross between debt and common stock is considered as

hybrid stock
common liabilities
debt liabilities
preferred stock

Detailed SolutionA stock which is hybrid and works as a cross between debt and common stock is considered as

19. In calculation of betas, an adjusted betas are highly dependent on historical

unadjusted betas
adjusted historical betas
fundamental historical betas
fundamental varied betas

Detailed SolutionIn calculation of betas, an adjusted betas are highly dependent on historical

20. Negative minimum risk portfolio of any security shows that market security sold

less than original price
greater than original price
equal to original price
equal to sum of stocks

Detailed SolutionNegative minimum risk portfolio of any security shows that market security sold

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