[amp_mcq option1=”steeper, greater” option2=”steeper, smaller” option3=”steeper, zero” option4=”Both A and B” correct=”option1″]
Financial management
32. The decision function of financial management can be broken down into the__________ decisions.
[amp_mcq option1=”financing and investment” option2=”investment, financing, and asset management” option3=”financing and dividend” option4=”capital budgeting, cash management, and credit management” correct=”option2″]
33. A company who issues bonds or stocks in result raised funds which finally
[amp_mcq option1=”increases liabilities” option2=”increases equity” option3=”increases cash” option4=”decreases cash” correct=”option1″]
Detailed SolutionA company who issues bonds or stocks in result raised funds which finally
34. Project whose cash flows are sufficient to repay capital invested for rate of return then net present value will be
[amp_mcq option1=”negative” option2=”zero” option3=”positive” option4=”independent” correct=”option3″]
35. International investing is________________.
[amp_mcq option1=”is only practical for institutional investors” option2=”increases the overall risk of a stock portfolio” option3=”always leads to higher returns than a domestic portfolio” option4=”can reduce risk due to increased diversification” correct=”option4″]
Detailed SolutionInternational investing is________________.
36. Marketable securities are primarily:
[amp_mcq option1=”Equity shares” option2=”Preference shares” option3=”Fixed deposits with companies” option4=”Short-term debt investments” correct=”option1″]
37. Traditional theorists believe that.
[amp_mcq option1=”there exists an optimal capital structure” option2=”no optimal capital structure” option3=”equal optimal capital structure” option4=”100% debt financial organizations” correct=”option1″]
38. If the Real rate of return is 10% and Inflation rate is 40%, then Money Discount Rate is:
[amp_mcq option1=”14.40%” option2=”2.50%” option3=”25%” option4=”14%” correct=”option1″]
39. Stocks in market portfolio are graphically represented with
[amp_mcq option1=”dashed line” option2=”straight line” option3=”market line” option4=”risk line” correct=”option3″]
Detailed SolutionStocks in market portfolio are graphically represented with
40. In capital asset pricing model, investors assume that buying and selling activity will
[amp_mcq option1=”affect stock prices” option2=”not affect stock prices” option3=”have high taxes” option4=”high transaction cost” correct=”option1″]