Financial management

31. Graph which is plotted for projected net present value and capital rates is called

net loss profile
net gain profile
net future value profile
net present value profile

Detailed SolutionGraph which is plotted for projected net present value and capital rates is called

32. If a firm has ke > r the Walter’s Model suggests for:

0% Payout
100% Payout
50% Payout
25% Payout

Detailed SolutionIf a firm has ke > r the Walter’s Model suggests for:

33. Which of the following is not a benefit of carrying inventories?

Reduction in ordering cost
Avoiding lost sales
Reducing carrying cost
Avoiding production shortages

Detailed SolutionWhich of the following is not a benefit of carrying inventories?

34. An information uses by investors for expecting future earnings is all recorded in

five years report
annual report
stock report
exchange report

Detailed SolutionAn information uses by investors for expecting future earnings is all recorded in

35. Type of bonds that pays no coupon payment but provides little appreciation are classified as

depreciated bond
interest bond
zero coupon bond
appreciation bond

Detailed SolutionType of bonds that pays no coupon payment but provides little appreciation are classified as

36. Which of the following is not a part of credit policy?

Collection Effort
Cash Discount
Credit Standard
Paying Practices of Debtors

Detailed SolutionWhich of the following is not a part of credit policy?

37. Which of the following is true regarding the expected return of a portfolio?

It is a weighted average only for stock portfolios
It can only be positive
It can never be above the highest individual return
All of the above are true

Detailed SolutionWhich of the following is true regarding the expected return of a portfolio?

38. Indexed bonds that are issued by linking payments to inflation are classified as

treasury inflation protected securities
premium protected securities
risk protected securities
liquidity protected securities

Detailed SolutionIndexed bonds that are issued by linking payments to inflation are classified as

39. In case of Net Income Approach, the Cost of equity is:

Constant
Increasing
Decreasing
None of the above

Detailed SolutionIn case of Net Income Approach, the Cost of equity is:

40. Claim against assets are represented by

saved earning
retained earnings
maintained earnings
saving account earning

Detailed SolutionClaim against assets are represented by

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