Financial management

31. Price per ratio is divided by cash flow per share ratio which is used for calculating

dividend to stock ratio
sales to growth ratio
cash flow to price ratio
price to cash flow ratio

Detailed SolutionPrice per ratio is divided by cash flow per share ratio which is used for calculating

32. Federal government tax revenues if it exceeds government spending then it is classified as

budget surplus
budget deficit
Federal Reserve
federal budget

Detailed SolutionFederal government tax revenues if it exceeds government spending then it is classified as

33. The cost of capital of a long term debt is generally.

Lower than the owned funds
Equal to that of owned funds
More or less than owned funds
Higher than that of owned funds

Detailed SolutionThe cost of capital of a long term debt is generally.

34. An annual rate of 16% if quoted by credit card issuer usually a bank is classified as

loan rate of return
local rate of return
annual percentage rate
annual rate of return

Detailed SolutionAn annual rate of 16% if quoted by credit card issuer usually a bank is classified as

35. Finance company providing loans at 12% with 2 compounding periods per year, periodic rate is classified as

3% per quarter
6% per quarter
6% per year
0.1667 % per year

Detailed SolutionFinance company providing loans at 12% with 2 compounding periods per year, periodic rate is classified as

36. Which exchange member is assigned to a specific trading post?

Commission broker
Floor trader
Specialist
Dealer

Detailed SolutionWhich exchange member is assigned to a specific trading post?

37. In retention growth model, payout ratio is subtracted from one to calculate

present value ratio
future value ratio
retention ratio
growth ratio

Detailed SolutionIn retention growth model, payout ratio is subtracted from one to calculate

38. An inflation free rate of return and inflation premium are two components of

quoted rate
unquoted rate
steeper rate
portfolio rate

Detailed SolutionAn inflation free rate of return and inflation premium are two components of

39. Lease which includes a third party (a lender) is known as:

Sale and Leaseback
Direct Lease
Inverse Lease
Leveraged Lease

Detailed SolutionLease which includes a third party (a lender) is known as:

40. Which of the following is not relevant for dividend payment for a year?

Cash flow position
Profit position
Paid up capital
Retained earnings

Detailed SolutionWhich of the following is not relevant for dividend payment for a year?

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