Financial management Archives - Page 3 of 112 - MCQ and Quiz for Exams

21. Ageing schedule incorporates the relationship between:

Creditors and Days Outstanding

Debtors and Days Outstanding

Average Age of Directors

Average Age of All Employees

Detailed SolutionAgeing schedule incorporates the relationship between:

22. Suppliers and Creditors of a firm are interested in:

Profitability Position

Liquidity Position

Market Share Position

Debt Position

Detailed SolutionSuppliers and Creditors of a firm are interested in:

23. In cash flow estimation and risk analysis, real rate will be equal to nominal rate if there is

no inflation

high inflation

no transactions

no acceleration

Detailed SolutionIn cash flow estimation and risk analysis, real rate will be equal to nominal rate if there is

24. According to Fama French Three-Factor model, market value of company equity is used to calculate

size of portfolio

size of industry

size of market

size of company

Detailed SolutionAccording to Fama French Three-Factor model, market value of company equity is used to calculate

25. Price of an outstanding bond decreases when market rate is

increased

decreased

earned

never changed

Detailed SolutionPrice of an outstanding bond decreases when market rate is

26. Characteristic of corporation that it can continue its work even owners are decreased can be classified as

limited life

unlimited life

corporate life

deceased partnership

Detailed SolutionCharacteristic of corporation that it can continue its work even owners are decreased can be classified as

27. The overall capitalization rate and the cost of debt remain constant for all degrees of leverage. This is pronounced by __________.

Traditional approach

Net operating income approach

Net income approach

MM approach

Detailed SolutionThe overall capitalization rate and the cost of debt remain constant for all degrees of leverage. This is pronounced by __________.

28. The value of EBIT at which EPS is equal to zero is known as ____________.

Break-even point

Financial break-even point

Operating break-even point

Overall break-even point

Detailed SolutionThe value of EBIT at which EPS is equal to zero is known as ____________.

29. Weighted average cost of debt, preferred stock and common equity is classified as

cost of salvage

cost of interest

cost of taxation

cost of capital

Detailed SolutionWeighted average cost of debt, preferred stock and common equity is classified as

30. Financial security which is tax exempted and issues by state governments to individuals is classified as

U.S treasury bonds

mortgages

municipal bonds

corporate bonds

Detailed SolutionFinancial security which is tax exempted and issues by state governments to individuals is classified as

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