[amp_mcq option1=”artificial provision” option2=”call provision” option3=”redeem provision” option4=”original provision” correct=”option2″]
Detailed SolutionRight held with corporations to call issued bonds for redemption is considered as
Financial management
22. Cost Capital for Equity Share Capital does not imply that:
[amp_mcq option1=”Market Price is equal to Book Value of share” option2=”Shareholders are ready to subscribe to right issue” option3=”Market Price is more than Issue Price” option4=”AC of the three above” correct=”option1″]
Detailed SolutionCost Capital for Equity Share Capital does not imply that:
23. Which of the following is / are assumption(s) underlying the Miller and Modigliani analysis?
[amp_mcq option1=”Capital markets are perfect” option2=”Investors are assumed to be rational and behave accordingly” option3=”There is no corporate or personal income tax” option4=”All of the above.” correct=”option4″]
24. Real rate of return is equal to:
[amp_mcq option1=”Nominal Rate รย Inflation Rate” option2=”Nominal Rate รยท Inflation Rate” option3=”Nominal Rate – Inflation Rate” option4=”Nominal Rate + Inflation Rate” correct=”option3″]
25. Funds which are used as an interest-bearing checking accounts are classified as
[amp_mcq option1=”money market funds” option2=”capital market funds” option3=”money mutual funds” option4=”insurance money funds” correct=”option1″]
Detailed SolutionFunds which are used as an interest-bearing checking accounts are classified as
26. Situation in financial options in which strike price is less than current price of stock is classified as
[amp_mcq option1=”in-the-money” option2=”out-of-the-money” option3=”out-of-the-portfolio” option4=”in-the-portfolio” correct=”option1″]
27. Prices of bonds will be decreased if an interest rates
[amp_mcq option1=”rises” option2=”declines” option3=”equals” option4=”none of above” correct=”option1″]
Detailed SolutionPrices of bonds will be decreased if an interest rates
28. In Traditional Approach, which one is correct?
[amp_mcq option1=”kc rises constantly” option2=”kd decreases constantly” option3=”k0 decreases constantly” option4=”None of the above” correct=”option4″]
Detailed SolutionIn Traditional Approach, which one is correct?
29. A theory which states that assets are traded at price equal to its intrinsic value is classified as
[amp_mcq option1=”efficient money hypothesis” option2=”efficient market hypothesis” option3=”inefficient market hypothesis” option4=”inefficient money hypothesis” correct=”option3″]
30. Financial markets include
[amp_mcq option1=”primary markets” option2=”capital markets” option3=”physical asset markets” option4=”all of above” correct=”option4″]