[amp_mcq option1=”dividend stock” option2=”firm part stock” option3=”tied stock” option4=”tracking stock” correct=”option4″]
Financial management
12. Price at which European and American options can be exercised is classified as
[amp_mcq option1=”exercise price” option2=”strike price” option3=”horizon price” option4=”Both A and B” correct=”option2″]
Detailed SolutionPrice at which European and American options can be exercised is classified as
13. Number of shares outstanding if it is divided by net income for using to calculate
[amp_mcq option1=”earning per share” option2=”dividends per share” option3=”book value of share” option4=”market value of shares” correct=”option1″]
Detailed SolutionNumber of shares outstanding if it is divided by net income for using to calculate
14. A fixed rate of _________ is payable on debentures
[amp_mcq option1=”dividend” option2=”Commission” option3=”Interest” option4=”Brokerage” correct=”option3″]
Detailed SolutionA fixed rate of _________ is payable on debentures
15. Project which is started by firm for increasing sales is classified as
[amp_mcq option1=”new expansion project” option2=”old expanded project” option3=”firm borrowing project” option4=”product line selection” correct=”option1″]
Detailed SolutionProject which is started by firm for increasing sales is classified as
16. The arbitrary process is the behavioral foundation for the ____________.
[amp_mcq option1=”MM approach” option2=”XX approach” option3=”Gorder approach” option4=”Miller approach” correct=”option1″]
Detailed SolutionThe arbitrary process is the behavioral foundation for the ____________.
17. Which of the following is not a relevant cost in Capital Budgeting?
[amp_mcq option1=”Sunk Cost” option2=”Opportunity Cost” option3=”Allocated Overheads” option4=”Both A and C above” correct=”option2″]
Detailed SolutionWhich of the following is not a relevant cost in Capital Budgeting?
18. A stock which is hybrid and works as a cross between debt and common stock is considered as
[amp_mcq option1=”hybrid stock” option2=”common liabilities” option3=”debt liabilities” option4=”preferred stock” correct=”option1″]
19. In calculation of betas, an adjusted betas are highly dependent on historical
[amp_mcq option1=”unadjusted betas” option2=”adjusted historical betas” option3=”fundamental historical betas” option4=”fundamental varied betas” correct=”option2″]
Detailed SolutionIn calculation of betas, an adjusted betas are highly dependent on historical
20. Negative minimum risk portfolio of any security shows that market security sold
[amp_mcq option1=”less than original price” option2=”greater than original price” option3=”equal to original price” option4=”equal to sum of stocks” correct=”option1″]
Detailed SolutionNegative minimum risk portfolio of any security shows that market security sold