Financial management

332. If future return on common stock is 14% and rate on T-bonds is 5% then current market risk premium will be

19.00%
9.00%
Rs 9
Rs 19

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class="read-more button" href="https://exam.pscnotes.com/mcq/if-future-return-on-common-stock-is-14-and-rate-on-t-bonds-is-5-then-current-market-risk-premium-will-be/#more-55210">Detailed SolutionIf future return on common stock is 14% and rate on T-bonds is 5% then current market risk premium will be

333. Reinvestment risk of bonds is higher on

short maturity bonds
high maturity bonds
high premium bonds
high inflated bonds

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higher on" class="read-more button" href="https://exam.pscnotes.com/mcq/reinvestment-risk-of-bonds-is-higher-on/#more-55189">Detailed SolutionReinvestment risk of bonds is higher on

334. Preferred dividend is Rs 50 and required rate of return is 2.5% then value of preferred stock would be

Rs 20.00
Rs 125.00
Rs 2,000.00
Rs 52.50

Detailed SolutionPreferred dividend is Rs 50

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and required rate of return is 2.5% then value of preferred stock would be

335. Which of the following is not an objective of cash management?

Maximization of cash balance
Minimization of cash balance
Optimization of cash balance
Zero cash balance

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class="read-more button" href="https://exam.pscnotes.com/mcq/which-of-the-following-is-not-an-objective-of-cash-management/#more-55184">Detailed SolutionWhich of the following is not an objective of cash management?

336. In financial planning, a higher strike price leads to call option

price is higher
rate is lower
price is lower
rate is higher

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leads to call option" class="read-more button" href="https://exam.pscnotes.com/mcq/in-financial-planning-a-higher-strike-price-leads-to-call-option/#more-55175">Detailed SolutionIn financial planning, a higher strike price leads to call option

337. Situation in which firm limits expenditures on capital is classified as

optimal rationing
capital rationing
marginal rationing
transaction rationing

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class="read-more button" href="https://exam.pscnotes.com/mcq/situation-in-which-firm-limits-expenditures-on-capital-is-classified-as/#more-55167">Detailed SolutionSituation in which firm limits expenditures on capital is classified as

338. Present value of future cash flows is Rs 2000 and an initial cost is Rs 1100 then profitability index will be

55.00%
1.82
0.55
1.82%

Detailed SolutionPresent value

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of future cash flows is Rs 2000 and an initial cost is Rs 1100 then profitability index will be

339. Type of cost which is used to raise common equity by reinvesting internal earnings is classified as

cost of mortgage
cost of common equity
cost of stocks
cost of reserve assets

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earnings is classified
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as" class="read-more button" href="https://exam.pscnotes.com/mcq/type-of-cost-which-is-used-to-raise-common-equity-by-reinvesting-internal-earnings-is-classified-as/#more-55136">Detailed SolutionType of cost which is used to raise common equity by reinvesting internal earnings is classified as

340. Profitability Index, when applied to Divisible Projects, impliedly assumes that:

Project cannot be taken in parts
NPV is linearly proportionate to part of the project taken up
NPV is additive in nature
Both B and C

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when applied to Divisible Projects, impliedly assumes that:" class="read-more button" href="https://exam.pscnotes.com/mcq/profitability-index-when-applied-to-divisible-projects-impliedly-assumes-that/#more-55115">Detailed SolutionProfitability Index, when applied to Divisible Projects, impliedly assumes that:
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