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

11. Risk per unit of return or stand alone risk is represented by

coefficient of standard

coefficient of return

coefficient of variation

coefficient of deviation

Detailed SolutionRisk per unit of return or stand alone risk is represented by

12. The use of preference share capital as against debt finance.

Reduces DFL

Increases DFL

Increases financial risk

Both a and b

Detailed SolutionThe use of preference share capital as against debt finance.

13. Free cash flow is Rs 17000 and net investment in operating capital is Rs 10000 then net operating profit after taxes would be

Rs 7,000.00

Rs 27,000.00

-Rs 27,000.00

-Rs 7,000.00

Detailed SolutionFree cash flow is Rs 17000 and net investment in operating capital is Rs 10000 then net operating profit after taxes would be

14. Standard deviation of tighter probability distribution is

long-termed

short-termed

risky

smaller

Detailed SolutionStandard deviation of tighter probability distribution is

15. Portfolio risk is best measured by the______________.

expected value

portfolio beta

weighted average of individual risk

standard deviation

Detailed SolutionPortfolio risk is best measured by the______________.

16. Weighted Average Cost of Capital is generally denoted

kA

kW

k0

kC

Detailed SolutionWeighted Average Cost of Capital is generally denoted

17. Stock split is a form of:

Dividend payment

Bonus issue

Financial restructuring

Dividend in kind

Detailed SolutionStock split is a form of:

18. Every company should follow:

High Dividend Payment

Low Dividend Payment

Stable Dividend Payment

Fixed Dividend Payment

Detailed SolutionEvery company should follow:

19. A model in which behavior of asset returns is measured for set of risk factors and market risk is classified as

factorization model

Two factor model

multifactor model

quoted factor model

Detailed SolutionA model in which behavior of asset returns is measured for set of risk factors and market risk is classified as

20. Cash and equivalents, inventories and accounts receivables are classified as

assets on balance sheet

liabilities on balance sheet

earnings on income statement

payments on income statement

Detailed SolutionCash and equivalents, inventories and accounts receivables are classified as

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