Financial management Archives - Page 2 of 112 - MCQ and Quiz for Exams

11. The highest level of market efficiency is_____________.

weak form efficiency

semi-strong form efficiency

random walk efficiency

strong form efficiency

Detailed SolutionThe highest level of market efficiency is_____________.

12. When price of bond is calculated below its par value, it is classified as

classified bond

discount bond

compound bond

consideration earning

Detailed SolutionWhen price of bond is calculated below its par value, it is classified as

13. In financial planning, formula MAX [current price of stock-strike price, 0] is used to calculate

option return rate

exercise value

option value

stock value

Detailed SolutionIn financial planning, formula MAX [current price of stock-strike price, 0] is used to calculate

14. A loan that is repaid on monthly, quarterly and annual basis in equal payments is classified as

amortized loan

depreciated loan

appreciated loan

repaid payments

Detailed SolutionA loan that is repaid on monthly, quarterly and annual basis in equal payments is classified as

15. Dividend irrelevance argument of MM Model is based on:

Issue of Debentures

Issue of Bonus Share

Arbitrage

Hedging

Detailed SolutionDividend irrelevance argument of MM Model is based on:

16. Notes, mortgages, bonds, stocks, treasury bills and consumer loans are classified as

financial instruments

capital assets

primary assets

competitive instruments

Detailed SolutionNotes, mortgages, bonds, stocks, treasury bills and consumer loans are classified as

17. Which of the following is a risk factor in capital budgeting?

Industry specific risk factors

Competition risk factors

Project specific risk factors

All of the above

Detailed SolutionWhich of the following is a risk factor in capital budgeting?

18. Partners who are only liable for their own part of investment are considered as

venture partners

corporate partners

limited partners

general partners

Detailed SolutionPartners who are only liable for their own part of investment are considered as

19. In expected rate of return for constant growth, stock price must grow according to an expected rate and

at same price

at different price

at yielded price

at buying price

Detailed SolutionIn expected rate of return for constant growth, stock price must grow according to an expected rate and

20. In Risk-adjusted Discount Rate method, which one is adjusted?

Cash flows

Life of the proposal

Rate of discount

Salvage value

Detailed SolutionIn Risk-adjusted Discount Rate method, which one is adjusted?

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