Financial management Archives

21. If book value is greater than market value comparison with investors for future stock are considered as

pessimistic

optimistic

experienced

inexperienced

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class="screen-reader-text">If book value is greater than market value comparison with investors for future stock are considered as

22. Between two capital plans, if expected EBIT is more than indifference level of EBIT, then:

Both plans be rejected

Both plans are good

One is better than other

None of the above

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indifference level of EBIT, then:" class="read-more button" href="https://exam.pscnotes.com/mcq/between-two-capital-plans-if-expected-ebit-is-more-than-indifference-level-of-ebit-then/#more-51509">Detailed Solution

23. Bonds with deferred call have protection which is classified as

provision protection

deferred protection

call protection

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xmlns="http://www.w3.org/2000/svg" viewBox="0 0 576 512"> Subscribe on YouTube class="screen-reader-text">Bonds with deferred call have protection which is classified as

24. Cost of common stock is 16% and bond yield is 9% then bond risk premium would be

7.00%

9.00%

1.78%

25.00%

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25. Constant growth rate is 6.5% and an expected dividend yield is 3.4% then an expected rate of return would be

9.90%

10.00%

3.10%

19.12%

Detailed SolutionConstant growth rate is 6.5% and

an expected dividend yield is 3.4% then an expected rate of return would be

26. A formula of after-tax component cost of debt is

interest rate-tax savings

marginal tax-required return

interest rate + tax savings

borrowing cost + embedded cost

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27. Combined leverage can be used to measure the relationship between:

EBIT and EPS

PAT and EPS

Sales and EPS

Sales and EBIT

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href="https://exam.pscnotes.com/mcq/combined-leverage-can-be-used-to-measure-the-relationship-between-2/#more-51458">Detailed Solution

28. The available capital funds are to be carefully allocated among competing projects by careful prioritization. This is called ____________.

capital positioning

capital structuring

capital rationing

capital budgeting

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is called ____________." class="read-more button" href="https://exam.pscnotes.com/mcq/the-available-capital-funds-are-to-be-carefully-allocated-among-competing-projects-by-careful-prioritization-this-is-called-____________/#more-51446">Detailed Solution