Financial management

371. Financial leverage measures ____________.

sensitivity of EBIT with respect of % change with respect to output
% variation in the level of production
no change with EBIT and EPS

Detailed SolutionFinancial leverage measures ____________.

372. Another name for stock brokers is______________.

specialists
registered representatives
security analysts
portfolio managers

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class="read-more button" href="https://exam.pscnotes.com/mcq/another-name-for-stock-brokers-is______________/#more-54567">Detailed SolutionAnother name for stock brokers is______________.

373. Bonds issued by corporations and exposed to default risk are classified as

corporation bonds
default bonds
risk bonds
zero risk bonds

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as" class="read-more button" href="https://exam.pscnotes.com/mcq/bonds-issued-by-corporations-and-exposed-to-default-risk-are-classified-as/#more-54560">Detailed SolutionBonds issued by corporations and exposed to default risk are classified as

374. ____________dividend promises to pay shareholders at future date

Scrip
Cash
Stock
Property

Detailed

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Solution____________dividend promises to pay shareholders at future date

375. The rational expectations model of dividend policy says that ______________.

Since the expectations of the investors are always rational, there will be no effect of dividend policy on the valuation of the firm
If the declared dividend is in accordance with the expectations, the change in the firms value will be minimal

Detailed SolutionThe rational expectations model of dividend policy says that ______________.

376. The Transaction Motive for holding cash is for:

Safety Cushion
Daily Operations
Purchase of Assets
Payment of Dividends

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href="https://exam.pscnotes.com/mcq/the-transaction-motive-for-holding-cash-is-for/#more-54456">Detailed SolutionThe Transaction Motive for holding cash is for:

377. Preferred dividend is Rs 60 and required rate of return is 20% then value of preferred stock will be

Rs 40.00
Rs 120.00
Rs 12.00
Rs 300.00

Detailed SolutionPreferred dividend is Rs

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60 and required rate of return is 20% then value of preferred stock will be

378. Which of the following is not a generally accepted approach for Calculation of Cost of Equity?

CAPM
Dividend Discount Model
Rate of Pref. Dividend plus Risk
Price-Earnings Ratio

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href="https://exam.pscnotes.com/mcq/which-of-the-following-is-not-a-generally-accepted-approach-for-calculation-of-cost-of-equity/#more-54441">Detailed SolutionWhich of the following is not a generally accepted approach for Calculation of Cost of Equity?

379. An unsystematic risk which can be eliminated but market risk is the

aggregate risk
remaining risk
effective risk
ineffective risk

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380. Which of the following is not applicable to commercial paper:

Face Value
Issue Price
Coupon Rate
None of the above

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to commercial paper:" class="read-more button" href="https://exam.pscnotes.com/mcq/which-of-the-following-is-not-applicable-to-commercial-paper/#more-54411">Detailed SolutionWhich of the following is not applicable to commercial paper:

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