Financial management

21. Dividend present value for period of non-constant growth in addition with horizon value is used to calculate

stock extrinsic value
stock intrinsic value
dividend intrinsic value
stock intrinsic value

Detailed SolutionDividend present value for period of non-constant growth in addition with horizon value is used to calculate

22. According to Black Scholes model, call option is well exercised on its

mid buying date
expiry date
buying date
mid selling date

Detailed SolutionAccording to Black Scholes model, call option is well exercised on its

23. The Markowitz model assumes most investors are_____________.

risk averse
risk neutral
risk seekers
risk moderators

Detailed SolutionThe Markowitz model assumes most investors are_____________.

24. Miller- Orr Model is suitable in those circumstances when the ________.

Demand for cash is steady
Demand for cash is not steady
Carry cost and transaction cost are to be kept at minimum
Demand for cash is variable

Detailed SolutionMiller- Orr Model is suitable in those circumstances when the ________.

25. A technique of lowering risk for multinational companies and globally designed portfolios is classified as

national diversification
behavioral diversification
global diversification
behavioral finance

Detailed SolutionA technique of lowering risk for multinational companies and globally designed portfolios is classified as

26. A model for optimizing the selection of securities is the ______ model.

Miller-Orr
Black-Sholes
Markowitz
Gordon

Detailed SolutionA model for optimizing the selection of securities is the ______ model.

27. Types of option markets do not include

European option
American option
expiry option
covered options

Detailed SolutionTypes of option markets do not include

28. Dividends paid to common shareholders and divided by common shares outstanding are equals to

earning per share
dividends per share
book value of share
market value of shares

Detailed SolutionDividends paid to common shareholders and divided by common shares outstanding are equals to

29. A firm has Capital of Rs. 10,00,000; Sales of Rs. 5,00,000; Gross Profit of Rs. 2,00,000 and Expenses of Rs. 1,00,000. What is the Net Profit Ratio?

20%
50%
10%
40%

Detailed SolutionA firm has Capital of Rs. 10,00,000; Sales of Rs. 5,00,000; Gross Profit of Rs. 2,00,000 and Expenses of Rs. 1,00,000. What is the Net Profit Ratio?

30. An option which can be exercised any desired time before an expiry date is classified as

Australian option
money option
European option
American option

Detailed SolutionAn option which can be exercised any desired time before an expiry date is classified as

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