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Financial management

21. Dividend present value for period of non-constant growth in addition with horizon value is used to calculate

stock extrinsic value
stock intrinsic value
dividend intrinsic value
stock intrinsic value
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Answer is Wrong!

Detailed SolutionDividend present value for period of non-constant growth in addition with horizon value is used to calculate

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22. According to Black Scholes model, call option is well exercised on its

mid buying date
expiry date
buying date
mid selling date
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Answer is Wrong!

Detailed SolutionAccording to Black Scholes model, call option is well exercised on its

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23. The Markowitz model assumes most investors are_____________.

risk averse
risk neutral
risk seekers
risk moderators
Answer is Right!
Answer is Wrong!

Detailed SolutionThe Markowitz model assumes most investors are_____________.

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24. Miller- Orr Model is suitable in those circumstances when the ________.

Demand for cash is steady
Demand for cash is not steady
Carry cost and transaction cost are to be kept at minimum
Demand for cash is variable
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Answer is Wrong!

Detailed SolutionMiller- Orr Model is suitable in those circumstances when the ________.

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25. A technique of lowering risk for multinational companies and globally designed portfolios is classified as

national diversification
behavioral diversification
global diversification
behavioral finance
Answer is Right!
Answer is Wrong!

Detailed SolutionA technique of lowering risk for multinational companies and globally designed portfolios is classified as

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26. A model for optimizing the selection of securities is the ______ model.

Miller-Orr
Black-Sholes
Markowitz
Gordon
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Answer is Wrong!

Detailed SolutionA model for optimizing the selection of securities is the ______ model.

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27. Types of option markets do not include

European option
American option
expiry option
covered options
Answer is Right!
Answer is Wrong!

Detailed SolutionTypes of option markets do not include

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28. Dividends paid to common shareholders and divided by common shares outstanding are equals to

earning per share
dividends per share
book value of share
market value of shares
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Answer is Wrong!

Detailed SolutionDividends paid to common shareholders and divided by common shares outstanding are equals to

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29. A firm has Capital of Rs. 10,00,000; Sales of Rs. 5,00,000; Gross Profit of Rs. 2,00,000 and Expenses of Rs. 1,00,000. What is the Net Profit Ratio?

20%
50%
10%
40%
Answer is Right!
Answer is Wrong!

Detailed SolutionA firm has Capital of Rs. 10,00,000; Sales of Rs. 5,00,000; Gross Profit of Rs. 2,00,000 and Expenses of Rs. 1,00,000. What is the Net Profit Ratio?

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30. An option which can be exercised any desired time before an expiry date is classified as

Australian option
money option
European option
American option
Answer is Right!
Answer is Wrong!

Detailed SolutionAn option which can be exercised any desired time before an expiry date is classified as

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