Financial management

11. Paid dividend is Rs 20 and dividend yield is 40% then current price would be

60.00%
Rs 60.00
Rs 50.00
2.00%

Detailed SolutionPaid dividend is Rs 20 and dividend yield is 40% then current price would be

12. Operating leverage helps in analysis of:

Business Risk
Financing Risk
Production Risk
Credit Risk

Detailed SolutionOperating leverage helps in analysis of:

13. Which of the following statements is correct?

A Higher Receivable Turnover is not desirable
Interest Coverage Ratio depends upon Tax Rate
Increase in Net Profit Ratio means increase in Sales
Lower Debt-Equity Ratio means lower Financial Risk

Detailed SolutionWhich of the following statements is correct?

14. Which of the following is not an element of credit policy?

Credit Terms
Collection Policy
Cash Discount Terms
Sales Price

Detailed SolutionWhich of the following is not an element of credit policy?

15. Input call parity relationship, present value of exercise price is added to call option which is equal to

put option stock
call option + stock
call option + market price
put option + market price

Detailed SolutionInput call parity relationship, present value of exercise price is added to call option which is equal to

16. In pure play method, a company can calculate its own cost of capital with help of averaging an

other company capital policy
other company beta
other company cost
other division cost

Detailed SolutionIn pure play method, a company can calculate its own cost of capital with help of averaging an

17. Positive minimum risk portfolio of any security shows that market security sold

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

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

18. If bond’s call provision is practiced in first year of issuance then an additional payment is classified as

issuance provision
bond provision
call provision
First provision

Detailed SolutionIf bond’s call provision is practiced in first year of issuance then an additional payment is classified as

19. The weak form of the EMH is supported if successive price changes over time are________.

independent of each other
negative
positive
lagged

Detailed SolutionThe weak form of the EMH is supported if successive price changes over time are________.

20. Stock in small companies, owned by few people but not actively traded is classified as

closely held stock
largely held stock
attributed stock
successful stock

Detailed SolutionStock in small companies, owned by few people but not actively traded is classified as

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