Financial management

31. In Inventory Turnover calculation, what is taken in the numerator?

Sales
Cost of Goods Sold
Opening Stock
Closing Stock

Detailed SolutionIn Inventory Turnover calculation, what is taken in the numerator?

32. The focal point of financial management in a firm is _________.

the number and types of products or services provided by the firm
the minimization of the amount of taxes paid by the firm
the creation of value for shareholders
the dollars profits earned by the firm

Detailed SolutionThe focal point of financial management in a firm is _________.

33. If a market is inefficient, as new information is received about a security____________.

nothing will happen
the stock price will fall at first and then later rise
there will be a lag in the adjustment of the stock price
there will be negative demand for the stock

Detailed SolutionIf a market is inefficient, as new information is received about a security____________.

34. Beginning price is Rs 25 and capital gains yield is 5% then capital gain would be

Rs 50.00
Rs 1.25
50 times
Rs 23.75

Detailed SolutionBeginning price is Rs 25 and capital gains yield is 5% then capital gain would be

35. Bonus share are not permitted unless the ____________ shares, if any, are made fully-paid.

partly paid
semi paid
fully paid
unpaid

Detailed SolutionBonus share are not permitted unless the ____________ shares, if any, are made fully-paid.

36. Combined Leverage is obtained from OL and FL by their:

Addition
Subtraction
Multiplication
Any of these

Detailed SolutionCombined Leverage is obtained from OL and FL by their:

37. Expected returns weighted average on assets in portfolio is considered as

weighted portfolio
expected return on portfolio
coefficient of portfolio
expected assets

Detailed SolutionExpected returns weighted average on assets in portfolio is considered as

38. Portfolio which consists of perfectly positive correlated assets having no effect of

negativity
positivity
correlation
diversification

Detailed SolutionPortfolio which consists of perfectly positive correlated assets having no effect of

39. In capital asset pricing model, covariance between stock and market is divided by variance of market returns is used to calculate

sales turnover of company
risk rate of company
beta coefficient of company
weighted mean of company

Detailed SolutionIn capital asset pricing model, covariance between stock and market is divided by variance of market returns is used to calculate

40. New York Stock Exchange and Nada stock market are classified as types of

primary stock market
equity market
secondary stock market
public offering market

Detailed SolutionNew York Stock Exchange and Nada stock market are classified as types of

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