Financial management

[amp_mcq option1=”directly contribute to the country’s productive capacity” option2=”indirectly to the country’s productive capacity” option3=”contribute to the country’s productive capacity both directly and indirectly” option4=”do not contribute to the country’s productive capacity either directly or indirectly” correct=”option2″]

Detailed SolutionFinancial assets ______.

[amp_mcq option1=”secured bond” option2=”debenture” option3=”obligation bond” option4=”specific bond” correct=”option2″]

Detailed SolutionAn unsecured bond that provides no lien against property as security for bond obligation is classified as

[amp_mcq option1=”aggressive investors” option2=”conservative investors” option3=”risk-averse investors” option4=”defensive investors” correct=”option1″]

Detailed SolutionPortfolios lying on the upper right portion of the efficient frontier are likely to be chosen by_______________.

[amp_mcq option1=”internal rate of return” option2=”international rate of return” option3=”intrinsic rate of return” option4=”investment return rate” correct=”option1″]

Detailed SolutionIn uneven cash flow, ‘IRR’ is an abbreviation of an

[amp_mcq option1=”operating leverage” option2=”financial leverage” option3=”total leverage” option4=”working capital leverage” correct=”option1″]

Detailed SolutionThe measure of business risk is __________.

[amp_mcq option1=”37.50%” option2=”7.50%” option3=”16.50%” option4=”2.67%” correct=”option3″]

Detailed SolutionBond yield is 12% and bond risk premium is 4.5% then cost of common stock would be

[amp_mcq option1=”-3.40%” option2=”3.40%” option3=”13.40%” option4=”-13.40%” correct=”option3″]

Detailed SolutionConstant growth rate is 8% and an expected dividend yield is 5.4% then expected rate of return would be

[amp_mcq option1=”low dividends paid” option2=”high risk prospect” option3=”high growth prospect” option4=”high marginal rate” correct=”option3″]

Detailed SolutionHigh price to earning ratio shows company’s

[amp_mcq option1=”super poison covenant” option2=”super poison put” option3=”super poison call” option4=”super poison redemption” correct=”option1″]

Detailed SolutionProtective covenant devised in market to reduce event risk and to control debt cost is classified as

[amp_mcq option1=”the risk associated with movements in security prices” option2=”reduced through diversification” option3=”higher when interest rates rise” option4=”the risk of loss of purchasing power” correct=”option1″]

Detailed SolutionUnsystematic risk is______.