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

21. Process of selling company stock at large to general public and get lending from banks is classified as an

initial public offering

external public offering

internal public offering

unprofessional offering

Detailed SolutionProcess of selling company stock at large to general public and get lending from banks is classified as an

22. In capital asset pricing model, an amount of risk that stock contributes to portfolio of market is classified as

stand-alone coefficient

relevant coefficient

alpha coefficient

beta coefficient

Detailed SolutionIn capital asset pricing model, an amount of risk that stock contributes to portfolio of market is classified as

23. In capital budgeting, term of bond which has great sensitivity to interest rates is

long-term bonds

short-term bonds

internal term bonds

external term bonds

Detailed SolutionIn capital budgeting, term of bond which has great sensitivity to interest rates is

24. _________ is equal to (common shareholders’ equity/common shares outstanding).

book value per share

liquidation value per share

market value per share

Tobin's Q

Detailed Solution_________ is equal to (common shareholders’ equity/common shares outstanding).

25. Of all stocks in a portfolio, required rate of return is classified as

return portfolio

in volatile portfolio

volatile portfolio

market portfolio

Detailed SolutionOf all stocks in a portfolio, required rate of return is classified as

26. Free cash flow is Rs 15000, operating cash flow is Rs 3000, investment outlay cash flow is Rs 5000 then salvage cash flow will be

Rs 17,000.00

-Rs 17,000.00

Rs 7,000.00

-Rs 7,000.00

Detailed SolutionFree cash flow is Rs 15000, operating cash flow is Rs 3000, investment outlay cash flow is Rs 5000 then salvage cash flow will be

27. An amount invested is Rs 2000 and return is Rs 200 then rate of return would be

0.10%

10.00%

Rs 1,800.00

Rs 2,200.00

Detailed SolutionAn amount invested is Rs 2000 and return is Rs 200 then rate of return would be

28. A growth industry is defined as ____________.

an industry with 15% rate of growth per annum

an industry where demand for its product is growing

an industry with high capital investment

an industry with average growth higher than the growth of the economy

Detailed SolutionA growth industry is defined as ____________.

29. Type of risk in which beta is equal to one is classified as

multiple risk stock

varied risk stock

total risk stock

average risk stock

Detailed SolutionType of risk in which beta is equal to one is classified as

30. Risk affects any firm with factors such as war, recessions, inflation and high interest rates is classified as

diversifiable risk

market risk

stock risk

portfolio risk

Detailed SolutionRisk affects any firm with factors such as war, recessions, inflation and high interest rates is classified as

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