Financial management Archives

11. In expected rate of return for constant growth, an expected dividend yield must be

functional decreasing

constant

continuously growing

functional increasing

Answer is Right!

Answer is Wrong!

Detailed SolutionIn expected rate

of return for constant growth, an expected dividend yield must be

12. Real risk-free rate is applicable when it is expected that there will be

high inflation

low inflation

no inflation

none of above

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that there will be" class="read-more button" href="https://exam.pscnotes.com/mcq/real-risk-free-rate-is-applicable-when-it-is-expected-that-there-will-be/#more-57510">Detailed Solution

13. In MM-Model, irrelevance of capital structure is based on:

Cost of Debt and Equity

Arbitrage Process

Decreasing k0

All of the above

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Answer is Wrong!

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class="read-more button" href="https://exam.pscnotes.com/mcq/in-mm-model-irrelevance-of-capital-structure-is-based-on/#more-57482">Detailed Solution

14. Credit Policy of a firm should involve a trade-off between increased:

Sales and Increased Profit

Profit and Increased Costs of Receivables

Sales and Cost of goods sold

None of the above

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Answer is Wrong!

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Policy of a firm should involve a trade-off between increased:"

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class="read-more button" href="https://exam.pscnotes.com/mcq/credit-policy-of-a-firm-should-involve-a-trade-off-between-increased/#more-57475">Detailed Solution

15. Present value of portfolio is Rs 900 and current value of stock in portfolio is Rs 1500 then current option price would be

Rs 2,400.00

-Rs 600.00

-Rs 2,400.00

Rs 600.00

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Detailed SolutionPresent value

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of portfolio is Rs 900 and current value of stock in portfolio is Rs 1500 then current option price would be

16. Tendency of people to blame failure on bad luck but given tribute of success to themselves is classified as

self-attribution bias

self-success bias

self-failure bias

self-condition bias

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success to themselves is classified as" class="read-more button" href="https://exam.pscnotes.com/mcq/tendency-of-people-to-blame-failure-on-bad-luck-but-given-tribute-of-success-to-themselves-is-classified-as/#more-57423">Detailed Solution

17. Which of the following is not a spontaneous source of short-term funds?

Trade credit

Accrued expenses

Provision for dividend

All of the above

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Answer is Wrong!

Detailed SolutionWhich of

the following is not a spontaneous source of short-term funds?

18. In capital asset pricing model, stock with high standard deviation tend to have

low variation

low beta

high beta

high variation

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button" href="https://exam.pscnotes.com/mcq/in-capital-asset-pricing-model-stock-with-high-standard-deviation-tend-to-have/#more-57413">Detailed Solution