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

21. Right held with corporations to call issued bonds for redemption is considered as

artificial provision

call provision

redeem provision

original provision

Detailed SolutionRight held with corporations to call issued bonds for redemption is considered as

22. Cost Capital for Equity Share Capital does not imply that:

Market Price is equal to Book Value of share

Shareholders are ready to subscribe to right issue

Market Price is more than Issue Price

AC of the three above

Detailed SolutionCost Capital for Equity Share Capital does not imply that:

23. Which of the following is / are assumption(s) underlying the Miller and Modigliani analysis?

Capital markets are perfect

Investors are assumed to be rational and behave accordingly

There is no corporate or personal income tax

All of the above.

Detailed SolutionWhich of the following is / are assumption(s) underlying the Miller and Modigliani analysis?

24. Real rate of return is equal to:

Nominal Rate Ã Inflation Rate

Nominal Rate Ã· Inflation Rate

Nominal Rate - Inflation Rate

Nominal Rate + Inflation Rate

Detailed SolutionReal rate of return is equal to:

25. Funds which are used as an interest-bearing checking accounts are classified as

money market funds

capital market funds

money mutual funds

insurance money funds

Detailed SolutionFunds which are used as an interest-bearing checking accounts are classified as

26. Situation in financial options in which strike price is less than current price of stock is classified as

in-the-money

out-of-the-money

out-of-the-portfolio

in-the-portfolio

Detailed SolutionSituation in financial options in which strike price is less than current price of stock is classified as

27. Prices of bonds will be decreased if an interest rates

rises

declines

equals

none of above

Detailed SolutionPrices of bonds will be decreased if an interest rates

28. In Traditional Approach, which one is correct?

kc rises constantly

kd decreases constantly

k0 decreases constantly

None of the above

Detailed SolutionIn Traditional Approach, which one is correct?

29. A theory which states that assets are traded at price equal to its intrinsic value is classified as

efficient money hypothesis

efficient market hypothesis

inefficient market hypothesis

inefficient money hypothesis

Detailed SolutionA theory which states that assets are traded at price equal to its intrinsic value is classified as

30. Financial markets include

primary markets

capital markets

physical asset markets

all of above

Detailed SolutionFinancial markets include

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