[amp_mcq option1=”trustee” option2=”trust” option3=”stated entity” option4=”owner entity” correct=”option1″]
Financial management
22. If there is no inflation during a period, then the Money Cashflow would be equal to:
[amp_mcq option1=”Present Value” option2=”Real Cash flow” option3=”Real Cash flow + Present Value” option4=”Real Cash flow – Present Value” correct=”option2″]
23. ‘That there is no corporate tax’ is assumed by:
[amp_mcq option1=”Net Income Approach” option2=”Net Operating Income Approach,” option3=”Traditional Approach” option4=”All of these” correct=”option1″]
Detailed Solution‘That there is no corporate tax’ is assumed by:
24. According to Black Scholes model, purchaser can borrow fraction of security at risk free interest rate which is
[amp_mcq option1=”short term” option2=”long term” option3=”transaction cost” option4=”no transaction cost” correct=”option1″]
25. Sellers of options in financial markets are classified as
[amp_mcq option1=”expiry writer” option2=”option writer” option3=”contract writer” option4=”bond writer” correct=”option3″]
Detailed SolutionSellers of options in financial markets are classified as
26. Members and employees of credit unions are loaned for
[amp_mcq option1=”mortgages” option2=”home improvement loans” option3=”auto purchases” option4=”all of above” correct=”option4″]
Detailed SolutionMembers and employees of credit unions are loaned for
27. Out of the following, what is not true in respect of factoring?
[amp_mcq option1=”Continuous arrangement between Factor and Seller” option2=”Sale of Receivables to the factor” option3=”Factor provides cost free finance to seller” option4=”None of the above” correct=”option3″]
Detailed SolutionOut of the following, what is not true in respect of factoring?
28. An additional desired compensation by investors for assuming an additional risk on investment is classified as
[amp_mcq option1=”risk premium” option2=”investor premium” option3=”additional premium” option4=”assumed premium” correct=”option1″]
29. The Real Cashflows must be discounted to get the present value at a rate equal to:
[amp_mcq option1=”Money Discount Rate” option2=”Inflation Rate” option3=”Real Discount Rate” option4=”Risk free rate of interest” correct=”option3″]
Detailed SolutionThe Real Cashflows must be discounted to get the present value at a rate equal to:
30. While calculating weighted average cost of capital _________.
[amp_mcq option1=”Preference shares are given more weight age” option2=”Cost of issue is considered” option3=”Tax factor is ignored” option4=”Risk factor is ignored” correct=”option3″]
Detailed SolutionWhile calculating weighted average cost of capital _________.