Financial management

311. The method of raising equity capital from existing members by offering securities on pro rata basis is referred to as __________.

Public issue
Right Issue
Private placement
Bought-Out-Deal

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securities on pro rata basis is referred to as __________." class="read-more button" href="https://exam.pscnotes.com/mcq/the-method-of-raising-equity-capital-from-existing-members-by-offering-securities-on-pro-rata-basis-is-referred-to-as-__________/#more-55450">Detailed SolutionThe method of raising equity capital from existing members by offering securities on pro rata basis is referred to as __________.

312. For which of the following factors are the debentures more attractive to the investors?

The principal is redeemable at maturity
trustee is appointed to preserve the interest of the debenture holders
All the above.

Detailed SolutionFor which of the following factors are the debentures more attractive to the investors?

313. MM Model argues that dividend is irrelevant as:

the value of the firm depends upon earning power
the investors buy shares for capital gain
dividend is payable after deciding the retained earnings

Detailed SolutionMM Model argues that dividend is irrelevant as:

314. Method of inventory recording gives lower cost of goods sold in income statement is classified as

last in first out
last out receivable
First out receivable
First in first out

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gives lower cost of goods sold in income statement is classified as" class="read-more button" href="https://exam.pscnotes.com/mcq/method-of-inventory-recording-gives-lower-cost-of-goods-sold-in-income-statement-is-classified-as/#more-55392">Detailed SolutionMethod of inventory recording gives lower cost of goods sold in income statement is classified as

315. Tax free bonds issue for welfare by industrial agencies or pollution control agencies are classified as

agent bonds
development bonds
pollution control bonds
Both B and C

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448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z"/> Subscribe on YouTube
button" href="https://exam.pscnotes.com/mcq/tax-free-bonds-issue-for-welfare-by-industrial-agencies-or-pollution-control-agencies-are-classified-as/#more-55373">Detailed SolutionTax free bonds issue for welfare by industrial agencies or pollution control agencies are classified as

316. A firm will have favourable leverage if its _____ are more than the debt cost

debt
interest
equity
earnings

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href="https://exam.pscnotes.com/mcq/a-firm-will-have-favourable-leverage-if-its-_____-are-more-than-the-debt-cost/#more-55367">Detailed SolutionA firm will have favourable leverage if its _____ are more than the debt cost

317. When a company uses increased fixed cost for production, this is an example of what type of leverage.

operating leverage
financial leverage
variable cost leverage
combined leverage

Detailed SolutionWhen a company uses

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48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z"/> Subscribe on YouTube
increased fixed cost for production, this is an example of what type of leverage.

318. Step in initial public offering in which hired agents act on behalf of owners is classified as

hiring problems
agency problems
corporation internal problems
corporation external problems

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class="youtube-icon"> Subscribe on YouTube agents act on behalf of owners is classified as" class="read-more button" href="https://exam.pscnotes.com/mcq/step-in-initial-public-offering-in-which-hired-agents-act-on-behalf-of-owners-is-classified-as/#more-55349">Detailed SolutionStep in initial public offering in which hired agents act on behalf of owners is classified as

319. If A = Annual Requirement, O = Order Cost and C = Carrying Cost per unit per annum, then EOQ:

$${left( { rac{{2{ ext{AO}}}}{{ ext{C}}}} ight)^2}$$
$$sqrt { rac{{2{ ext{AO}}}}{{ ext{C}}}} $$
2A ÷ OC
2AOC

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d="M549.7 124.1c-6.3-23.7-24.8-42.3-48.3-48.6C458.8 64 288 64 288 64S117.2 64 74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z"/> Subscribe on YouTube per annum, then EOQ:" class="read-more button" href="https://exam.pscnotes.com/mcq/if-a-annual-requirement-o-order-cost-and-c-carrying-cost-per-unit-per-annum-then-eoq/#more-55332">Detailed SolutionIf A = Annual Requirement, O = Order Cost and C = Carrying Cost per unit per annum, then EOQ:

320. If the intrinsic value of a share is less than the market price, which of the most reasonable?

That shares have lesser degree of risk
That market is over valuing the shares
That the company is high dividend paying
That market is undervaluing the share

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the intrinsic value of a share is less than the market price, which of the most reasonable?" class="read-more button" href="https://exam.pscnotes.com/mcq/if-the-intrinsic-value-of-a-share-is-less-than-the-market-price-which-of-the-most-reasonable/#more-55329">Detailed SolutionIf the intrinsic value of a share
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is less than the market price, which of the most reasonable?

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