Financial management

11. Cash flows occurring with more than one change in sign of cash flow are classified as

non-normal cash flow
normal cash flow
normal costs
non-normal costs

Detailed SolutionCash flows occurring with more than one change in sign of cash flow are classified as

12. An expected dividend yield is 5.5% and expected rate of return is 11.5% then constant growth rate would be

2.09%
-6.00%
17.50%
6.00%

Detailed SolutionAn expected dividend yield is 5.5% and expected rate of return is 11.5% then constant growth rate would be

13. Probability distribution is classified as normal if expected return lies between

( + 1 and -1)
( + 2 and -2)
( + 3 and -3)
( + 4 and -4)

Detailed SolutionProbability distribution is classified as normal if expected return lies between

14. Trading procedures dimensions include

location dimension
method of matching orders
price dimension
Both A and B

Detailed SolutionTrading procedures dimensions include

15. The gross working capital is a _____ concern concept.

Going concern
money measurement
revenue concept
cost concept

Detailed SolutionThe gross working capital is a _____ concern concept.

16. Marketable securities are primarily________.

short-term debt instruments
short-term equity securities
long-term debt instruments
long-term equity securities

Detailed SolutionMarketable securities are primarily________.

17. Preferred dividend is divided by preferred stock price multiply by (1-floatation cost) is used to calculate

transaction cost of preferred stock
financing of preferred stock
weighted cost of capital
component cost of preferred stock

Detailed SolutionPreferred dividend is divided by preferred stock price multiply by (1-floatation cost) is used to calculate

18. ________________ factors lead to activity of stock market.

Money supply
Per capita income
Unemployment rate
Manufacturing and Trade

Detailed Solution________________ factors lead to activity of stock market.

19. Information which is reflected in current market prices with help of past price movements is classified as

market efficiency
semi strong efficiency
weak form efficiency
strong form efficiency

Detailed SolutionInformation which is reflected in current market prices with help of past price movements is classified as

20. Finance company providing loans at 3% with five compounding periods per year, nominal annual rate is classified as

15.00%
0.60%
10.00%
1.67%

Detailed SolutionFinance company providing loans at 3% with five compounding periods per year, nominal annual rate is classified as

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