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