Financial management

11. An interest rate which is paid by money borrower and charged by lender is considered as

annual rate
periodic rate
perpetuity rate of return
annuity rate of return

Detailed SolutionAn interest rate which is paid by money borrower and charged by lender is considered as

12. Float management is related to:

Cash Management
Inventory Management
Receivables Management
Raw Materials Management

Detailed SolutionFloat management is related to:

13. Modified rate of return and modified internal rate of return with exceed cost of capital if net present value is

positive
negative
zero
one

Detailed SolutionModified rate of return and modified internal rate of return with exceed cost of capital if net present value is

14. Most financial advisors are registered with the Securities and Exchange Commission as_______________.

registered representatives
registered investor advisors
registered financial planners
registered securities consultants

Detailed SolutionMost financial advisors are registered with the Securities and Exchange Commission as_______________.

15. Capital gain expected by stockholders and dividends are included in

debt rate
investment return
interest rate
cost of equity

Detailed SolutionCapital gain expected by stockholders and dividends are included in

16. Financial leverage helps one to estimate ____________.

business risk
financial risk
both risks
production risk

Detailed SolutionFinancial leverage helps one to estimate ____________.

17. Risk of doing business in particular country and arises from foreign investments is classified as

country risk
foreign risk
proffered risk
common risk

Detailed SolutionRisk of doing business in particular country and arises from foreign investments is classified as

18. Stated value of bonds or face value is considered as

state value
par value
bond value
per value

Detailed SolutionStated value of bonds or face value is considered as

19. If stock market price is higher than strike price so call option

price will be lower
rate will be higher
price will be higher
rate will be lower

Detailed SolutionIf stock market price is higher than strike price so call option

20. The major problem with the Markowitz model is its_______________.

lack of accuracy
predictability flaws
complexity
inability to handle large number of inputs

Detailed SolutionThe major problem with the Markowitz model is its_______________.

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