[amp_mcq option1=”monthly” option2=”quarterly” option3=”semi-annually” option4=”yearly” correct=”option4″]
Financial management
22. Net investment in operating capital is Rs 7000 and net operating profit after taxes is Rs 11,000 then free cash flow will be
[amp_mcq option1=”-Rs 18,000.00″ option2=”Rs 18,000.00″ option3=”-Rs 4,000.00″ option4=”Rs 4,000.00″ correct=”option3″]
23. Real rate expected cash flows and nominal rate expected cash flows must be
[amp_mcq option1=”accelerated” option2=”equal” option3=”different” option4=”inflated” correct=”option3″]
Detailed SolutionReal rate expected cash flows and nominal rate expected cash flows must be
24. Type of bond in which payments are made on basis of inflation index is classified as
[amp_mcq option1=”borrowed bond” option2=”purchasing power bond” option3=”surplus bond” option4=”deficit bond” correct=”option2″]
25. In calculation of net cash flow, deferred tax payments are classified as
[amp_mcq option1=”non-cash revenues” option2=”non-cash charges” option3=”current liabilities” option4=”income expense” correct=”option1″]
Detailed SolutionIn calculation of net cash flow, deferred tax payments are classified as
26. Sum of market risk and diversifiable risk are classified as total risk which is equivalent to
[amp_mcq option1=”Sharpe’s alpha” option2=”standard alphas” option3=”alpha’s variance” option4=”variance” correct=”option4″]
27. Cost of Capital for Government securities is also known as:
[amp_mcq option1=”Risk-free Rate of Interest” option2=”Maximum Rate of Return” option3=”Rate of Interest on Fixed Deposits” option4=”None of the above” correct=”option1″]
Detailed SolutionCost of Capital for Government securities is also known as:
28. Investors can normally afford to assume larger risks in the ____ phase of the life- cycle.
[amp_mcq option1=”accumulation” option2=”consolidation” option3=”spending” option4=”gifting” correct=”option1″]
29. Long period of bond maturity leads to
[amp_mcq option1=”more price change” option2=”stable prices” option3=”standing prices” option4=”mature prices” correct=”option1″]
30. The central issue of efficient markets concerns______________.
[amp_mcq option1=”regulations” option2=”information” option3=”participants” option4=”structure” correct=”option2″]
Detailed SolutionThe central issue of efficient markets concerns______________.