Financial management

31. An amount of company retain earning, return on equity and inflation are factors which effect

earning growth
return on assets
return on sales
return on value

Detailed SolutionAn amount of company retain earning, return on equity and inflation are factors which effect

32. Expected dividends in each year and price investor expecting to get at selling of stock are two components of

dividend cash flow
expected cash flows
price cash flows
investing cash

Detailed SolutionExpected dividends in each year and price investor expecting to get at selling of stock are two components of

33. The expected return on an investment in stock is___________.

the expected dividend payments
the anticipated capital gains
the sum of expected dividends and capital gains
less than the realized return

Detailed SolutionThe expected return on an investment in stock is___________.

34. Required return is 15% and premium for risk is 11% then risk free return would be

26.00%
4.00%
16.50%
1.36%

Detailed SolutionRequired return is 15% and premium for risk is 11% then risk free return would be

35. A formula such as net income available to common stockholders divided by common equity is used to calculate

return on earning power
return on investment
return on common equity
return on interest

Detailed SolutionA formula such as net income available to common stockholders divided by common equity is used to calculate

36. __________ is concerned with the acquisition, financing, and management of assets with some overall goal in mind.

Financial management
Profit maximization
Agency theory
Social responsibility

Detailed Solution__________ is concerned with the acquisition, financing, and management of assets with some overall goal in mind.

37. According to exercise value and option price, market value of option will be zero when

stock price is maximum
option price is zero
stock price is zero
stock price is minimum

Detailed SolutionAccording to exercise value and option price, market value of option will be zero when

38. Correct measure of risk of stock is called

alpha
beta
variance
market relevance

Detailed SolutionCorrect measure of risk of stock is called

39. Process in which stockholders transfer right to vote to any other person is classified as

proxy
transfer process
voting process
assigning right process

Detailed SolutionProcess in which stockholders transfer right to vote to any other person is classified as

40. Professionals such as doctors, accountants and lawyers often make corporations are classified as

general professionals
Professional Corporation
professional association
Both B and C

Detailed SolutionProfessionals such as doctors, accountants and lawyers often make corporations are classified as

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