Financial management

21. Dividends are paid________________.

monthly
quarterly
semi-annually
yearly

Detailed SolutionDividends are paid________________.

22. Net investment in operating capital is Rs 7000 and net operating profit after taxes is Rs 11,000 then free cash flow will be

-Rs 18,000.00
Rs 18,000.00
-Rs 4,000.00
Rs 4,000.00

Detailed SolutionNet investment in operating capital is Rs 7000 and net operating profit after taxes is Rs 11,000 then free cash flow will be

23. Real rate expected cash flows and nominal rate expected cash flows must be

accelerated
equal
different
inflated

Detailed SolutionReal rate expected cash flows and nominal rate expected cash flows must be

24. Type of bond in which payments are made on basis of inflation index is classified as

borrowed bond
purchasing power bond
surplus bond
deficit bond

Detailed SolutionType of bond in which payments are made on basis of inflation index is classified as

25. In calculation of net cash flow, deferred tax payments are classified as

non-cash revenues
non-cash charges
current liabilities
income expense

Detailed SolutionIn calculation of net cash flow, deferred tax payments are classified as

26. Sum of market risk and diversifiable risk are classified as total risk which is equivalent to

Sharpe's alpha
standard alphas
alpha's variance
variance

Detailed SolutionSum of market risk and diversifiable risk are classified as total risk which is equivalent to

27. Cost of Capital for Government securities is also known as:

Risk-free Rate of Interest
Maximum Rate of Return
Rate of Interest on Fixed Deposits
None of the above

Detailed SolutionCost of Capital for Government securities is also known as:

28. Investors can normally afford to assume larger risks in the ____ phase of the life- cycle.

accumulation
consolidation
spending
gifting

Detailed SolutionInvestors can normally afford to assume larger risks in the ____ phase of the life- cycle.

29. Long period of bond maturity leads to

more price change
stable prices
standing prices
mature prices

Detailed SolutionLong period of bond maturity leads to

30. The central issue of efficient markets concerns______________.

regulations
information
participants
structure

Detailed SolutionThe central issue of efficient markets concerns______________.

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