[amp_mcq option1=”Regulation Q, which is no longer in existence” option2=”Regulation M” option3=”Regulation D” option4=”Regulation B, which is still in existence” correct=”option1″]
Financial management
12. Which of the following is not true with reference capital budgeting?
[amp_mcq option1=”Capital budgeting is related to asset replacement decisions” option2=”Cost of capital is equal to minimum required return” option3=”Existing investment in a project is not treated as sunk cost” option4=”Timing of cash flows is relevant” correct=”option2″]
Detailed SolutionWhich of the following is not true with reference capital budgeting?
13. Securitization is related to conversion of:
[amp_mcq option1=”Receivables” option2=”Stock” option3=”Investments” option4=”Creditors” correct=”option1″]
Detailed SolutionSecuritization is related to conversion of:
14. Retention ratio is 0.55 and return on equity is 12.5% then growth retention model would be
[amp_mcq option1=”11.95%” option2=”6.88%” option3=”13.05%” option4=”22.72%” correct=”option3″]
15. In weighted average cost of capital, cost of capital which is risk adjusted and developed for each category of
[amp_mcq option1=”long-term projects” option2=”industry [industrial] projects” option3=”divisional projects” option4=”short-term projects” correct=”option1″]
16. Which of the following is not normally one of the reasons for a change in an investor’s circumstances?
[amp_mcq option1=”Change in market conditions” option2=”Change in legal considerations” option3=”Change in time horizon” option4=”Change in tax circumstances” correct=”option1″]
17. According to top rating agencies S&P triple-A and double-A rating bonds are classified as an
[amp_mcq option1=”extremely discounted” option2=”extremely safe” option3=”extremely risky” option4=”extremely inflated” correct=”option2″]
18. Which element of the basic NPV equation is adjusted by the RADR?
[amp_mcq option1=”Denominator” option2=”Numerator” option3=”Both A and B” option4=”None of these” correct=”option3″]
Detailed SolutionWhich element of the basic NPV equation is adjusted by the RADR?
19. Noncash revenues and noncash charges if it subtracted from net income is equal to
[amp_mcq option1=”free cash flow” option2=”retained cash flow” option3=”net cash flow” option4=”financing cash flow” correct=”option1″]
Detailed SolutionNoncash revenues and noncash charges if it subtracted from net income is equal to
20. To whom does the Treasurer most likely report?
[amp_mcq option1=”Chief Financial Officer” option2=”Vice President of Operations” option3=”Chief Executive Officer” option4=”Board of Directors” correct=”option1″]
Detailed SolutionTo whom does the Treasurer most likely report?