Financial management

11. Movement of price or rise or fall of prices of options is classified as

option lattice
pricing movement
price change
binomial lattice

Detailed

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SolutionMovement of price or rise or fall of prices of options is classified as

12. Altering the leverage ratio does not influence the market value of the firm. This is the basic premise of _______.

net income approach
traditional approach
modern approach
net operating income approach

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is the basic premise of _______." class="read-more button" href="https://exam.pscnotes.com/mcq/altering-the-leverage-ratio-does-not-influence-the-market-value-of-the-firm-this-is-the-basic-premise-of-_______/#more-58261">Detailed SolutionAltering the leverage ratio does not influence the market value of the firm. This is the basic premise of _______.

13. Capital gain is Rs 2 and beginning price is Rs 24 then capital gains yield will be

22.00%
24.00%
14.00%
12.00%

Detailed SolutionCapital gain is

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64S117.2 64 74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z"/> Subscribe on YouTube
Rs 2 and beginning price is Rs 24 then capital gains yield will be

14. Mutual funds may be affiliated with an underwriter. This means____________.

the underwriter has an exclusive right to distribute shares
the underwriter selects the securities in the portfolio
there is no risk to the issuer of the mutual fund
there is no risk to the investor of the mutual fund.

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class="read-more-container">Detailed SolutionMutual funds may be affiliated with an underwriter. This means____________.

15. Greater chance of lower actual return than expected return and greater variation is indicated by

smaller standard deviation
larger standard deviation
smaller variance
larger variance

Detailed SolutionGreater chance of lower actual

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89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z"/> Subscribe on YouTube
return than expected return and greater variation is indicated by

16. Values recorded as determined in marketplace are considered as

market values
book values
appreciated values
depreciated values

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href="https://exam.pscnotes.com/mcq/values-recorded-as-determined-in-marketplace-are-considered-as/#more-58172">Detailed SolutionValues recorded as determined in marketplace are considered as

17. A firm has EBIT of Rs. 50,000. Market value of debt is Rs. 80,000 and overall capitalization rate is 20%. Market value of firm under NOI Approach is:

Rs. 2,50,000
Rs. 1,70,000
Rs. 30,000
Rs. 1,30,000

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512"> Subscribe on YouTube 20%. Market value of firm under NOI Approach is:" class="read-more button" href="https://exam.pscnotes.com/mcq/a-firm-has-ebit-of-rs-50000-market-value-of-debt-is-rs-80000-and-overall-capitalization-rate-is-20-market-value-of-firm-under-noi-approach-is/#more-58168">Detailed SolutionA firm has EBIT of Rs. 50,000. Market value of debt is Rs. 80,000 and overall capitalization rate is 20%. Market value of firm under NOI Approach is:

18. An increase in value of option leads to low present value of exercise cost only if it has

low volatility
interest rates are high
interest rates are low
high volatility

Detailed SolutionAn increase in value of option leads to

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288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z"/> Subscribe on YouTube
low present value of exercise cost only if it has

19. An earning of business which is available for free distribution to all stockholders and creditors is classified as

free cash flows
free distribution
available income
cash income

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creditors is classified as" class="read-more button" href="https://exam.pscnotes.com/mcq/an-earning-of-business-which-is-available-for-free-distribution-to-all-stockholders-and-creditors-is-classified-as/#more-58142">Detailed SolutionAn earning of business which is available for free distribution to all stockholders and creditors is classified as

20. A markets which deals with long-term corporate stocks are classified as

liquid markets
short-term markets
capital markets
money markets

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href="https://exam.pscnotes.com/mcq/a-markets-which-deals-with-long-term-corporate-stocks-are-classified-as/#more-58122">Detailed SolutionA markets which deals with long-term corporate stocks are classified as

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