Financial management

21. An official entity that represents bondholders and ensures stated rules in indenture is classified as

trustee
trust
stated entity
owner entity

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href="https://exam.pscnotes.com/mcq/an-official-entity-that-represents-bondholders-and-ensures-stated-rules-in-indenture-is-classified-as/#more-55316">Detailed SolutionAn official entity that represents bondholders and ensures stated rules in indenture is classified as

22. If there is no inflation during a period, then the Money Cashflow would be equal to:

Present Value
Real Cash flow
Real Cash flow + Present Value
Real Cash flow - Present Value

Detailed SolutionIf there is no inflation during

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a period, then the Money Cashflow would be equal to:

23. ‘That there is no corporate tax’ is assumed by:

Net Income Approach
Net Operating Income Approach,
Traditional Approach
All of these

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is assumed by:" class="read-more button" href="https://exam.pscnotes.com/mcq/that-there-is-no-corporate-tax-is-assumed-by/#more-55291">Detailed Solution‘That there is no corporate tax’ is assumed by:

24. According to Black Scholes model, purchaser can borrow fraction of security at risk free interest rate which is

short term
long term
transaction cost
no transaction cost

Detailed SolutionAccording to Black Scholes model,

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448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z"/> Subscribe on YouTube
purchaser can borrow fraction of security at risk free interest rate which is

25. Sellers of options in financial markets are classified as

expiry writer
option writer
contract writer
bond writer

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24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z"/> Subscribe on YouTube class="read-more button" href="https://exam.pscnotes.com/mcq/sellers-of-options-in-financial-markets-are-classified-as/#more-55287">Detailed SolutionSellers of options in financial markets are classified as

26. Members and employees of credit unions are loaned for

mortgages
home improvement loans
auto purchases
all of above

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class="read-more button" href="https://exam.pscnotes.com/mcq/members-and-employees-of-credit-unions-are-loaned-for/#more-55271">Detailed SolutionMembers and employees of credit unions are loaned for

27. Out of the following, what is not true in respect of factoring?

Continuous arrangement between Factor and Seller
Sale of Receivables to the factor
Factor provides cost free finance to seller
None of the above

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class="read-more-container">Detailed SolutionOut of the following, what is not true in respect of factoring?

28. An additional desired compensation by investors for assuming an additional risk on investment is classified as

risk premium
investor premium
additional premium
assumed premium

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132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z"/> Subscribe on YouTube on investment is classified as" class="read-more button" href="https://exam.pscnotes.com/mcq/an-additional-desired-compensation-by-investors-for-assuming-an-additional-risk-on-investment-is-classified-as/#more-55256">Detailed SolutionAn additional desired compensation by investors for assuming an additional risk on investment is classified as

29. The Real Cashflows must be discounted to get the present value at a rate equal to:

Money Discount Rate
Inflation Rate
Real Discount Rate
Risk free rate of interest

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value at a rate equal to:" class="read-more button" href="https://exam.pscnotes.com/mcq/the-real-cashflows-must-be-discounted-to-get-the-present-value-at-a-rate-equal-to/#more-55248">Detailed SolutionThe Real Cashflows must be discounted to get the present value at a rate equal to:

30. While calculating weighted average cost of capital _________.

Preference shares are given more weight age
Cost of issue is considered
Tax factor is ignored
Risk factor is ignored

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288 64 288 64S117.2 64 74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z"/> Subscribe on YouTube _________." class="read-more button" href="https://exam.pscnotes.com/mcq/while-calculating-weighted-average-cost-of-capital-_________/#more-55229">Detailed SolutionWhile calculating weighted average cost of capital _________.

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