[amp_mcq option1=”Relevant Decision” option2=”Active Decision” option3=”Passive Decision” option4=”Irrelevant Decision” correct=”option1″]
Detailed SolutionResiduals Theory argues that dividend is a:
Financial management
22. Third step in calculating value of stock with non-constant growth rate is to find
[amp_mcq option1=”PV of expected dividends” option2=”FV of expected dividends” option3=”PV of intrinsic rate” option4=”FV of intrinsic rate” correct=”option1″]
Detailed SolutionThird step in calculating value of stock with non-constant growth rate is to find
23. Bond which is issued in market and few days are passed of its issuance is classified as
[amp_mcq option1=”instable bond” option2=”outstanding bond” option3=”standing bond” option4=”stable bond” correct=”option2″]
24. Type of bond which pays interest payment only when it earns is classified as
[amp_mcq option1=”income bond” option2=”interest bond” option3=”payment bond” option4=”earning bond” correct=”option1″]
Detailed SolutionType of bond which pays interest payment only when it earns is classified as
25. Markets in which corporations raise capital for creating market transaction which are classified as
[amp_mcq option1=”commercial markets” option2=”residential markets” option3=”primary markets” option4=”consumer credit loans” correct=”option3″]
26. The market price of a share of common stock is determined by ___________.
[amp_mcq option1=”the board of directors of the firm” option2=”the stock exchange on which the stock is listed” option3=”the president of the company” option4=”individuals buying and selling the stock” correct=”option4″]
Detailed SolutionThe market price of a share of common stock is determined by ___________.
27. Diversification reduces _________.
[amp_mcq option1=”Interest rate risk” option2=”Market risk” option3=”Unique risk” option4=”Inflation risk” correct=”option2″]
28. Inventory Turnover measures the relationship of inventory with:
[amp_mcq option1=”Average Sales” option2=”Cost of Goods Sold” option3=”Total Purchases” option4=”Total Assets” correct=”option2″]
Detailed SolutionInventory Turnover measures the relationship of inventory with:
29. Which of the following argues that the value of levered firm is higher than that of the unlevered firm?
[amp_mcq option1=”Net Income Approach” option2=”Net Operating Income Approach” option3=”MM Model with Taxes” option4=”Both A and C” correct=”option3″]
30. Type of provision which allows an orderly retirement of an issued bond which is classified as
[amp_mcq option1=”whole call provision” option2=”super fund provision” option3=”floating fund provision” option4=”sinking fund provision” correct=”option4″]