Financial management Archives

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

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.

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of the following factors are the debentures more attractive to the investors?" class="read-more button" href="https://exam.pscnotes.com/mcq/for-which-of-the-following-factors-are-the-debentures-more-attractive-to-the-investors/#more-55404">Detailed Solution

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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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 Solution

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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are classified as" class="read-more 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 Solution

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

debt

interest

equity

earnings

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

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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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 Solution

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 Ã· OC

2AOC

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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 Solution

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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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 Solution

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