[amp_mcq option1=”competitors” option2=”shareholders” option3=”directors” option4=”all of above” correct=”option4″]
Detailed SolutionCorporate governance charter of rules of behaving is applicable on
Financial management
32. Markets which bring closer institutions needing funds and with surplus funds are classified as
[amp_mcq option1=”financial markets” option2=”corporate institutions” option3=”hedge firms” option4=”retirement planners” correct=”option1″]
33. External factors such as expiration of basic patents and industry competition effect
[amp_mcq option1=”patents premium” option2=”competition premium” option3=”company’s beta” option4=”expiry premium” correct=”option1″]
34. Initial cost is Rs 5000 and probability index is 3.2 then present value of cash flows is
[amp_mcq option1=”Rs 8,200.00″ option2=”Rs 16,000.00″ option3=”Rs 10,000.00″ option4=”Rs 1,562.50″ correct=”option1″]
35. High portfolio return is 6.5% and low portfolio return is 3.0% then HML portfolio will be
[amp_mcq option1=”2.16%” option2=”9.50%” option3=”3.50%” option4=”0.4615 times” correct=”option2″]
36. Net income available to stockholders is Rs 150 and total assets are Rs 2,100 then return on total assets would be
[amp_mcq option1=”0.07%” option2=”7.14%” option3=”0.05 times” option4=”7.15 times” correct=”option2″]
37. A model which regresses return of stock against return of market is classified as
[amp_mcq option1=”regression model” option2=”market model” option3=”error model” option4=”risk free model” correct=”option1″]
Detailed SolutionA model which regresses return of stock against return of market is classified as
38. An implicit cost of increasing proportion of debt is:
[amp_mcq option1=”Tax should would not be available on new debt” option2=”P.E. Ratio would increase” option3=”Equity shareholders would demand higher return” option4=”Rate of Return of the company would decrease” correct=”option3″]
Detailed SolutionAn implicit cost of increasing proportion of debt is:
39. Bonds which are more risky than corporate bonds and are issued by major corporations are classified as
[amp_mcq option1=”common stocks” option2=”corporate stocks” option3=”leases” option4=”preferred stocks” correct=”option1″]
40. In binomial approach of option pricing model, fourth step is to create
[amp_mcq option1=”equalize domain of payoff” option2=”equalize ending price” option3=”riskless investment” option4=”high risky investment” correct=”option1″]
Detailed SolutionIn binomial approach of option pricing model, fourth step is to create