[amp_mcq option1=”annual rate” option2=”periodic rate” option3=”perpetuity rate of return” option4=”annuity rate of return” correct=”option1″]
Financial management
12. Float management is related to:
[amp_mcq option1=”Cash Management” option2=”Inventory Management” option3=”Receivables Management” option4=”Raw Materials Management” correct=”option1″]
13. Modified rate of return and modified internal rate of return with exceed cost of capital if net present value is
[amp_mcq option1=”positive” option2=”negative” option3=”zero” option4=”one” correct=”option1″]
14. Most financial advisors are registered with the Securities and Exchange Commission as_______________.
[amp_mcq option1=”registered representatives” option2=”registered investor advisors” option3=”registered financial planners” option4=”registered securities consultants” correct=”option2″]
15. Capital gain expected by stockholders and dividends are included in
[amp_mcq option1=”debt rate” option2=”investment return” option3=”interest rate” option4=”cost of equity” correct=”option4″]
Detailed SolutionCapital gain expected by stockholders and dividends are included in
16. Financial leverage helps one to estimate ____________.
[amp_mcq option1=”business risk” option2=”financial risk” option3=”both risks” option4=”production risk” correct=”option2″]
Detailed SolutionFinancial leverage helps one to estimate ____________.
17. Risk of doing business in particular country and arises from foreign investments is classified as
[amp_mcq option1=”country risk” option2=”foreign risk” option3=”proffered risk” option4=”common risk” correct=”option1″]
18. Stated value of bonds or face value is considered as
[amp_mcq option1=”state value” option2=”par value” option3=”bond value” option4=”per value” correct=”option2″]
Detailed SolutionStated value of bonds or face value is considered as
19. If stock market price is higher than strike price so call option
[amp_mcq option1=”price will be lower” option2=”rate will be higher” option3=”price will be higher” option4=”rate will be lower” correct=”option3″]
Detailed SolutionIf stock market price is higher than strike price so call option
20. The major problem with the Markowitz model is its_______________.
[amp_mcq option1=”lack of accuracy” option2=”predictability flaws” option3=”complexity” option4=”inability to handle large number of inputs” correct=”option1″]
Detailed SolutionThe major problem with the Markowitz model is its_______________.