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

21. An official entity that represents bondholders and ensures stated rules in indenture is classified as

trustee

trust

stated entity

owner entity

Detailed SolutionAn official entity that represents bondholders and ensures stated rules in indenture is classified as

22. If there is no inflation during a period, then the Money Cashflow would be equal to:

Present Value

Real Cash flow

Real Cash flow + Present Value

Real Cash flow - Present Value

Detailed SolutionIf there is no inflation during a period, then the Money Cashflow would be equal to:

23. ‘That there is no corporate tax’ is assumed by:

Net Income Approach

Net Operating Income Approach,

Traditional Approach

All of these

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

short term

long term

transaction cost

no transaction cost

Detailed SolutionAccording to Black Scholes model, purchaser can borrow fraction of security at risk free interest rate which is

25. Sellers of options in financial markets are classified as

expiry writer

option writer

contract writer

bond writer

Detailed SolutionSellers of options in financial markets are classified as

26. Members and employees of credit unions are loaned for

mortgages

home improvement loans

auto purchases

all of above

Detailed SolutionMembers and employees of credit unions are loaned for

27. Out of the following, what is not true in respect of factoring?

Continuous arrangement between Factor and Seller

Sale of Receivables to the factor

Factor provides cost free finance to seller

None of the above

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

risk premium

investor premium

additional premium

assumed premium

Detailed SolutionAn additional desired compensation by investors for assuming an additional risk on investment is classified as

29. The Real Cashflows must be discounted to get the present value at a rate equal to:

Money Discount Rate

Inflation Rate

Real Discount Rate

Risk free rate of interest

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 _________.

Preference shares are given more weight age

Cost of issue is considered

Tax factor is ignored

Risk factor is ignored

Detailed SolutionWhile calculating weighted average cost of capital _________.

Page 1 Page 2 Page 3 Page 4 Page 5

Test 1 Test 2 Test 3 Test 4 Test 5 Test 6 Test 7 Test 8 Test 9 Test 10 Test 11 Test 12 Test 13 Test 14 Test 15 Test 16 Test 17 Test 18 Test 19 Test 20 Test 21 Test 22 Test 23

Exit mobile version