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

11. An interest rate which is paid by money borrower and charged by lender is considered as

annual rate

periodic rate

perpetuity rate of return

annuity rate of return

Detailed SolutionAn interest rate which is paid by money borrower and charged by lender is considered as

12. Float management is related to:

Cash Management

Inventory Management

Receivables Management

Raw Materials Management

Detailed SolutionFloat management is related to:

13. Modified rate of return and modified internal rate of return with exceed cost of capital if net present value is

positive

negative

zero

one

Detailed SolutionModified rate of return and modified internal rate of return with exceed cost of capital if net present value is

14. Most financial advisors are registered with the Securities and Exchange Commission as_______________.

registered representatives

registered investor advisors

registered financial planners

registered securities consultants

Detailed SolutionMost financial advisors are registered with the Securities and Exchange Commission as_______________.

15. Capital gain expected by stockholders and dividends are included in

debt rate

investment return

interest rate

cost of equity

Detailed SolutionCapital gain expected by stockholders and dividends are included in

16. Financial leverage helps one to estimate ____________.

business risk

financial risk

both risks

production risk

Detailed SolutionFinancial leverage helps one to estimate ____________.

17. Risk of doing business in particular country and arises from foreign investments is classified as

country risk

foreign risk

proffered risk

common risk

Detailed SolutionRisk of doing business in particular country and arises from foreign investments is classified as

18. Stated value of bonds or face value is considered as

state value

par value

bond value

per value

Detailed SolutionStated value of bonds or face value is considered as

19. If stock market price is higher than strike price so call option

price will be lower

rate will be higher

price will be higher

rate will be lower

Detailed SolutionIf stock market price is higher than strike price so call option

20. The major problem with the Markowitz model is its_______________.

lack of accuracy

predictability flaws

complexity

inability to handle large number of inputs

Detailed SolutionThe major problem with the Markowitz model is its_______________.

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