Financial management

[amp_mcq option1=”3% discount if payment in 15 days, otherwise full payment in 40 days” option2=”15% discount if payment in 3 days, otherwise full payment 40 days” option3=”3% interest if payment made in 40 days and 15% interest thereafter” option4=”None of the above” correct=”option1″]

Detailed SolutionCash Discount term 3/15, net 40 means:

[amp_mcq option1=”Cash budget indicates timings of short-term borrowing” option2=”Cash budget is based on accrual concept” option3=”Cash budget is based on cash flow concept” option4=”Repayment of principal amount of law is shown in cash budget” correct=”option4″]

Detailed SolutionWhich of the following is not true of cash budget?

[amp_mcq option1=”Rs 75.00″ option2=”-Rs 75.00″ option3=”-Rs 20.00″ option4=”Rs 20.00″ correct=”option4″]

Detailed SolutionAn expected final stock price is Rs 45 and an original investment is Rs 25 then an expected capital gain will be

[amp_mcq option1=”nominal rate” option2=”premium rate” option3=”quoted rate” option4=”both a and c” correct=”option4″]

Detailed SolutionCoupon rate of bond is also called

[amp_mcq option1=”There are no transaction costs” option2=”Securities are infinitely divisible” option3=”Investors have homogeneous expectations” option4=”All the firms pay tax on their income at the same rate” correct=”option4″]

Detailed SolutionWhich of the following is not an assumption in the Miller & Modigliani approach?

[amp_mcq option1=”particular value” option2=”intrinsic value” option3=”fundamental value” option4=”Both B and C” correct=”option2″]

Detailed SolutionValue of stock as concluded with help of analysis by particular investor is classified as

[amp_mcq option1=”consumer credit loans” option2=”commercial markets” option3=”residential markets” option4=”mortgage markets” correct=”option1″]

Detailed SolutionMarkets dealing loans of autos, education, vacations and appliances are considered as

[amp_mcq option1=”finance policy” option2=”credit policy” option3=”profit policy” option4=”fund policy” correct=”option1″]

Detailed SolutionThe volume of sales is influenced by ____ of a firm.

[amp_mcq option1=”15.00%” option2=”1.00%” option3=”5.60%” option4=”1.14%” correct=”option1″]

Detailed SolutionMarket risk premium is 8% and risk free return is 7% then market required return would be

[amp_mcq option1=”Rs 315.25″ option2=”Rs 331.01″ option3=”Rs 99.49″ option4=”Rs 318.25″ correct=”option1″]

Detailed SolutionFuture value of annuity FVA(ordinary) is, if deposited value is Rs 100 and earn 5% every year of total three years will be