[amp_mcq option1=”present value of equity” option2=”future value of equity” option3=”present value cash flow” option4=”future value of cash flow” correct=”option3″]
Detailed SolutionFirst step in calculation of net present value is to find out
Financial management
32. Rate of interest which is usually discussed by investors whenever rate of return is discussed is classified as
[amp_mcq option1=”yield to maturity” option2=”yield to return” option3=”yield to earning” option4=”yield to investors” correct=”option1″]
33. The material wealth of a society is equal to the sum of _________.
[amp_mcq option1=”all financial assets” option2=”all real assets” option3=”all financial and real assets” option4=”all physical assets” correct=”option3″]
Detailed SolutionThe material wealth of a society is equal to the sum of _________.
34. Markets which deal with buying and selling of bonds, mortgages, notes and stocks are considered as
[amp_mcq option1=”financial instruments” option2=”financial asset markets” option3=”physical asset markets” option4=”easy markets” correct=”option1″]
35. Which of the following techniques of project appraisal does not consider the time value of money?
[amp_mcq option1=”Benefit cost ratio” option2=”Net present value” option3=”Internal rate of return” option4=”Accounting Rate of Return” correct=”option4″]
36. Lottery payoffs and payment for rental apartments are examples of
[amp_mcq option1=”lump sum amount” option2=”deferred annuity” option3=”annuity due” option4=”payment fixed series” correct=”option1″]
Detailed SolutionLottery payoffs and payment for rental apartments are examples of
37. Long-term equity anticipation security is usually classified as
[amp_mcq option1=”short-term options” option2=”long-term options” option3=”short money options” option4=”yearly call” correct=”option2″]
Detailed SolutionLong-term equity anticipation security is usually classified as
38. Operating leverage = ______.
[amp_mcq option1=”contribution / EBIT” option2=”contribution / EBT” option3=”contribution / total expenses” option4=”contribution / operating PBT” correct=”option1″]
39. MM Model of Dividend irrelevance uses arbitrage between:
[amp_mcq option1=”Dividend and Bonus” option2=”Dividend and Capital Issue” option3=”Profit and Investment” option4=”None of the above” correct=”option1″]
Detailed SolutionMM Model of Dividend irrelevance uses arbitrage between:
40. If a firm has a DOL of 2.8, it means:
[amp_mcq option1=”If sales increase by 2.8%, the EBIT will increase by 1%” option2=”If EBIT increase by 2.896, the EPS will increase by 1%” option3=”If sales rise by 1%, EBIT will rise by 2.8%” option4=”None of the above” correct=”option3″]