[amp_mcq option1=”initial public offering” option2=”external public offering” option3=”internal public offering” option4=”unprofessional offering” correct=”option1″]
Financial management
22. In capital asset pricing model, an amount of risk that stock contributes to portfolio of market is classified as
[amp_mcq option1=”stand-alone coefficient” option2=”relevant coefficient” option3=”alpha coefficient” option4=”beta coefficient” correct=”option2″]
23. In capital budgeting, term of bond which has great sensitivity to interest rates is
[amp_mcq option1=”long-term bonds” option2=”short-term bonds” option3=”internal term bonds” option4=”external term bonds” correct=”option1″]
Detailed SolutionIn capital budgeting, term of bond which has great sensitivity to interest rates is
24. _________ is equal to (common shareholders’ equity/common shares outstanding).
[amp_mcq option1=”book value per share” option2=”liquidation value per share” option3=”market value per share” option4=”Tobin’s Q” correct=”option1″]
Detailed Solution_________ is equal to (common shareholders’ equity/common shares outstanding).
25. Of all stocks in a portfolio, required rate of return is classified as
[amp_mcq option1=”return portfolio” option2=”in volatile portfolio” option3=”volatile portfolio” option4=”market portfolio” correct=”option4″]
Detailed SolutionOf all stocks in a portfolio, required rate of return is classified as
26. Free cash flow is Rs 15000, operating cash flow is Rs 3000, investment outlay cash flow is Rs 5000 then salvage cash flow will be
[amp_mcq option1=”Rs 17,000.00″ option2=”-Rs 17,000.00″ option3=”Rs 7,000.00″ option4=”-Rs 7,000.00″ correct=”option3″]
27. An amount invested is Rs 2000 and return is Rs 200 then rate of return would be
[amp_mcq option1=”0.10%” option2=”10.00%” option3=”Rs 1,800.00″ option4=”Rs 2,200.00″ correct=”option2″]
Detailed SolutionAn amount invested is Rs 2000 and return is Rs 200 then rate of return would be
28. A growth industry is defined as ____________.
[amp_mcq option1=”an industry with 15% rate of growth per annum” option2=”an industry where demand for its product is growing” option3=”an industry with high capital investment” option4=”an industry with average growth higher than the growth of the economy” correct=”option4″]
Detailed SolutionA growth industry is defined as ____________.
29. Type of risk in which beta is equal to one is classified as
[amp_mcq option1=”multiple risk stock” option2=”varied risk stock” option3=”total risk stock” option4=”average risk stock” correct=”option4″]
Detailed SolutionType of risk in which beta is equal to one is classified as
30. Risk affects any firm with factors such as war, recessions, inflation and high interest rates is classified as
[amp_mcq option1=”diversifiable risk” option2=”market risk” option3=”stock risk” option4=”portfolio risk” correct=”option2″]