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

11. During planning period, a marginal cost for raising a new debt is classified as

debt cost

relevant cost

borrowing cost

embedded cost

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

12. Input call parity relationship, put option minus call option in addition with stock is equal to

exercise price present value

exercise price future value

time line value

time value of bond

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

13. Degree of total leverage can be applied in measuring change in _________.

EBIT to a percentage change in quantity

EPS to a percentage change in EBIT

EPS to a percentage change in quantity

Quantity to a percentage change in EBIT

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

14. In modern investment analysis, the risk for a stock is related to its_____________.

leverage factor

standard deviation

beta coefficient

coefficient of variation

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

15. Walters model on dividend policy assumes that.

the firm offers an increasing amount of dividend per share at a given level of price per share

the firm has a finite life

the cost of capital of the firm is variable

equal to current assets plus current liabilities including bank borrowings

Detailed SolutionWalters model on dividend policy assumes that.

16. In capital market line, risk of efficient portfolio is measured by its

standard deviation

variance

aggregate risk

ineffective risk

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

17. Evaluation of Capital Budgeting Proposals is based on Cash Flows because:

Cash Flows are easy to calculate

Cash Flows are suggested by SEBI

Cash is more important than profit

None of the above

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

18. Merrill Lynch, Morgan Stanley and Credit Suisse Group plan for raising capital is classified as

investment banking houses

exchange houses

transfer houses

foreign exchange houses

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

19. Under income-tax provisions, depreciation on lease asset is allowed to:

Lessor

Lessee

Any of the two

None of the two

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

20. The job of a finance manager is confined to:

Raising funds

Management of cash

Raising of funds and their effective utilization

None of these

Detailed SolutionThe job of a finance manager is confined to:

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