[amp_mcq option1=”Rs 12.54″ option2=”Rs 12,500.00″ option3=”Rs 12,504.00″ option4=”Rs 8,400.00″ correct=”option1″]
Detailed SolutionValue of payment is Rs 25 and an interest rate is 2%, then present value will be
Financial management
32. Commercial paper are generally issued at a price:
[amp_mcq option1=”Equal to face value” option2=”More than face value” option3=”Less than face value” option4=”Equal to redemption value” correct=”option3″]
Detailed SolutionCommercial paper are generally issued at a price:
33. Which of the following is an argument for the relevance of dividends?
[amp_mcq option1=”Informational content” option2=”Reduction of uncertainty” option3=”Some investors’ preference for current income” option4=”All of the above.” correct=”option4″]
Detailed SolutionWhich of the following is an argument for the relevance of dividends?
34. Price earning ratio and price by cash flow ratio are classified as
[amp_mcq option1=”marginal ratios” option2=”equity ratios” option3=”return ratios” option4=”market value ratios” correct=”option4″]
Detailed SolutionPrice earning ratio and price by cash flow ratio are classified as
35. Which of the following is not a characteristic of investments companies?
[amp_mcq option1=”pooled investing” option2=”diversification” option3=”managed portfolios” option4=”reduced expenses” correct=”option4″]
Detailed SolutionWhich of the following is not a characteristic of investments companies?
36. In case of Gordon’s Model, the MP for zero payout is zero. It means that:
[amp_mcq option1=”Shares are not traded” option2=”Shares available free of cost” option3=”Investors are not ready to offer any price” option4=”None of the above” correct=”option3″]
Detailed SolutionIn case of Gordon’s Model, the MP for zero payout is zero. It means that:
37. A premium charged by lenders for securities that cannot be converted into cash is classified as
[amp_mcq option1=”required premium” option2=”liquidity premium” option3=”marketability premium” option4=”Both B and C” correct=”option2″]
38. In capital budgeting, a technique which is based upon discounted cash flow is classified as
[amp_mcq option1=”net present value method” option2=”net future value method” option3=”net capital budgeting method” option4=”net equity budgeting method” correct=”option1″]
39. In calculation of time value of money, ‘PMT’ represents
[amp_mcq option1=”present money tracking” option2=”payment” option3=”payment money tracking” option4=”future money payment” correct=”option2″]
Detailed SolutionIn calculation of time value of money, ‘PMT’ represents
40. According to put call parity relationship, call option plus present value of exercise price minus stock is to calculate
[amp_mcq option1=”present value of option” option2=”call option” option3=”put option” option4=”future value of option” correct=”option1″]