Financial management

21. Investment professionals whose jobs may depend on their performance relative to the market are the______________.

registered representatives
security analysts
investment bankers
portfolio managers

Detailed SolutionInvestment professionals whose jobs may depend on their performance relative to the market are the______________.

22. Dollar return is divided by invested amount which is used for calculating the

rate of return
return amount
investment rate
received amount

Detailed SolutionDollar return is divided by invested amount which is used for calculating the

23. If the average balance of debtors has increased, which of the following might not show a change in general?

Total Sales
Average Payables
Current Ratio
Bad Debt loss

Detailed SolutionIf the average balance of debtors has increased, which of the following might not show a change in general?

24. Financial Break-even level of EBIT is one at which:

EPS is one
EPS is zero
EPS is infinite
EPS is negative

Detailed SolutionFinancial Break-even level of EBIT is one at which:

25. Which of the following is not applied in capital budgeting?

Cash flows be calculated in incremental terms
All costs and benefits are measured on cash basis
All accrued costs and revenues be incorporated
All benefits are measured on after-tax basis

Detailed SolutionWhich of the following is not applied in capital budgeting?

26. A regulatory body which licenses brokers and oversees traders is classified as

international firm of auction system
international association of network dealers
national firm of equity dealers
national association of securities dealers

Detailed SolutionA regulatory body which licenses brokers and oversees traders is classified as

27. Current value of portfolio is Rs 550 and to cover an obligation of call option is Rs 200 then value of stock would be

Rs 350.00
Rs 275.00
Rs 750.00
Rs 1,000.00

Detailed SolutionCurrent value of portfolio is Rs 550 and to cover an obligation of call option is Rs 200 then value of stock would be

28. Which of the following is not considered by Miller-Orr Model?

Variability in cash requirement
Cost of transaction
Holding cost
Total annual requirement of cash

Detailed SolutionWhich of the following is not considered by Miller-Orr Model?

29. Number of years forecasted to recover an original investment is classified as

payback period
forecasted period
original period
investment period

Detailed SolutionNumber of years forecasted to recover an original investment is classified as

30. Risk-aversion of an investor can be measured by:

Market Rate of Return
Risk-free Rate of Return
Portfolio Return
None of the above

Detailed SolutionRisk-aversion of an investor can be measured by:

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