[amp_mcq option1=”cash equivalents” option2=”long-term investments” option3=”inventories” option4=”short-term investments” correct=”option2″]
Financial management
22. Degree of financial leverage is a measure of relationship between ___________.
[amp_mcq option1=”EPS and EBIT” option2=”EBIT and quantity produced” option3=”EPS and quantity produced” option4=”EPS and sales” correct=”option1″]
Detailed SolutionDegree of financial leverage is a measure of relationship between ___________.
23. One way to obtain earnings forecasts is the mechanical procedure known as___________.
[amp_mcq option1=”cross-reference analysis” option2=”exponential trending” option3=”time series analysis” option4=”data mining” correct=”option3″]
24. Cost of Equity Share Capital is more than cost of debt because:
[amp_mcq option1=”Face value of debentures is more than face value of shares” option2=”Equity shares have higher risk than debt” option3=”Equity shares are easily saleable” option4=”All of the three above” correct=”option2″]
Detailed SolutionCost of Equity Share Capital is more than cost of debt because:
25. Slope coefficient of beta is classified statistically significant if its probability is
[amp_mcq option1=”greater than 5%” option2=”equal to 5%” option3=”less than 5%” option4=”less than 2%” correct=”option3″]
26. Variability of stock price, option term to maturity and risk free rate are dependents of
[amp_mcq option1=”price of an option” option2=”expiry of an option” option3=”exercise of an option” option4=”estimation of an option” correct=”option1″]
27. In alternative investments, constant cash flow stream is equal to initial cash flow stream in approach which is classified as
[amp_mcq option1=”greater annual annuity method” option2=”equivalent annual annuity” option3=”lesser annual annuity method” option4=”zero annual annuity method” correct=”option2″]
28. If no information is available, the General Rule for valuation of stock for balance sheet is:
[amp_mcq option1=”Replacement Cost” option2=”Realizable Value” option3=”Historical Cost” option4=”Standard Cost” correct=”option3″]
29. According to Black Scholes model, rate which is constant and known is classified as
[amp_mcq option1=”short term return rate” option2=”long term return rate” option3=”risk free interest rate” option4=”risky rate of return” correct=”option3″]
Detailed SolutionAccording to Black Scholes model, rate which is constant and known is classified as
30. An increase in marginal cost of capital and capital rationing are two arising complications of
[amp_mcq option1=”maximum capital budget” option2=”greater capital budget” option3=”optimal capital budget” option4=”minimum capital budget” correct=”option1″]