Financial management

[amp_mcq option1=”debt cost” option2=”relevant cost” option3=”borrowing cost” option4=”embedded cost” correct=”option2″]

Detailed SolutionDuring planning period, a marginal cost for raising a new debt is classified as

[amp_mcq option1=”exercise price present value” option2=”exercise price future value” option3=”time line value” option4=”time value of bond” correct=”option1″]

Detailed SolutionInput call parity relationship, put option minus call option in addition with stock is equal to

[amp_mcq option1=”EBIT to a percentage change in quantity” option2=”EPS to a percentage change in EBIT” option3=”EPS to a percentage change in quantity” option4=”Quantity to a percentage change in EBIT” correct=”option1″]

Detailed SolutionDegree of total leverage can be applied in measuring change in _________.

[amp_mcq option1=”leverage factor” option2=”standard deviation” option3=”beta coefficient” option4=”coefficient of variation” correct=”option3″]

Detailed SolutionIn modern investment analysis, the risk for a stock is related to its_____________.

[amp_mcq option1=”the firm offers an increasing amount of dividend per share at a given level of price per share” option2=”the firm has a finite life” option3=”the cost of capital of the firm is variable” option4=”equal to current assets plus current liabilities including bank borrowings” correct=”option1″]

Detailed SolutionWalters model on dividend policy assumes that.

[amp_mcq option1=”standard deviation” option2=”variance” option3=”aggregate risk” option4=”ineffective risk” correct=”option1″]

Detailed SolutionIn capital market line, risk of efficient portfolio is measured by its

[amp_mcq option1=”Cash Flows are easy to calculate” option2=”Cash Flows are suggested by SEBI” option3=”Cash is more important than profit” option4=”None of the above” correct=”option3″]

Detailed SolutionEvaluation of Capital Budgeting Proposals is based on Cash Flows because:

[amp_mcq option1=”investment banking houses” option2=”exchange houses” option3=”transfer houses” option4=”foreign exchange houses” correct=”option1″]

Detailed SolutionMerrill Lynch, Morgan Stanley and Credit Suisse Group plan for raising capital is classified as

[amp_mcq option1=”Lessor” option2=”Lessee” option3=”Any of the two” option4=”None of the two” correct=”option2″]

Detailed SolutionUnder income-tax provisions, depreciation on lease asset is allowed to:

[amp_mcq option1=”Raising funds” option2=”Management of cash” option3=”Raising of funds and their effective utilization” option4=”None of these” correct=”option3″]

Detailed SolutionThe job of a finance manager is confined to: