[amp_mcq option1=”Market risk” option2=”Systematic risk” option3=”Non-diversifiable risk” option4=”Idiosyncratic risk” correct=”option4″]
Detailed SolutionCompany specific risk is also known as ________.
Financial management
22. Risk free rate is subtracted from expected market return is considered as
[amp_mcq option1=”country risk” option2=”diversifiable risk” option3=”equity risk premium” option4=”market risk premium” correct=”option4″]
Detailed SolutionRisk free rate is subtracted from expected market return is considered as
23. Type of variability in which a project contributes in return of company is considered as
[amp_mcq option1=”variable risk” option2=”within firm risk” option3=”corporate risk” option4=”Both B and C” correct=”option4″]
24. A point where profile of net present value crosses horizontal axis at plotted graph indicates project
[amp_mcq option1=”costs” option2=”cash flows” option3=”internal rate of return” option4=”external rate of return” correct=”option3″]
25. Stockholders having right to elect directors and in smaller firms have high post are classified as
[amp_mcq option1=”public stocks” option2=”inactive stocks” option3=”special stockholders” option4=”common stockholders” correct=”option4″]
26. In capital budgeting, positive net present value results in
[amp_mcq option1=”negative economic value added” option2=”positive economic value added” option3=”zero economic value added” option4=”percent economic value added” correct=”option1″]
Detailed SolutionIn capital budgeting, positive net present value results in
27. The long-run objective of financial management is to________.
[amp_mcq option1=”maximize earnings per share” option2=”maximize the value of the firm’s common stock” option3=”maximize return on investment” option4=”maximize market share” correct=”option2″]
Detailed SolutionThe long-run objective of financial management is to________.
28. Savings accounts are___________ but are not__________.
[amp_mcq option1=”negotiable; liquid” option2=”marketable; liquid” option3=”liquid; personal” option4=”liquid; marketable” correct=”option3″]
Detailed SolutionSavings accounts are___________ but are not__________.
29. Baumol’s Model of Cash Management attempts to:
[amp_mcq option1=”Minimise the holding cost” option2=”Minimization of transaction cost” option3=”Minimization of total cost” option4=”Minimization of cash balance” correct=”option3″]
Detailed SolutionBaumol’s Model of Cash Management attempts to:
30. Use of Preference Share Capital in Capital structure:
[amp_mcq option1=”Increases OL” option2=”Increases FL” option3=”Decreases OL” option4=”Decreases FL” correct=”option1″]
Detailed SolutionUse of Preference Share Capital in Capital structure: