[amp_mcq option1=”earning growth” option2=”return on assets” option3=”return on sales” option4=”return on value” correct=”option1″]
Financial management
32. Expected dividends in each year and price investor expecting to get at selling of stock are two components of
[amp_mcq option1=”dividend cash flow” option2=”expected cash flows” option3=”price cash flows” option4=”investing cash” correct=”option1″]
33. The expected return on an investment in stock is___________.
[amp_mcq option1=”the expected dividend payments” option2=”the anticipated capital gains” option3=”the sum of expected dividends and capital gains” option4=”less than the realized return” correct=”option3″]
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
[amp_mcq option1=”26.00%” option2=”4.00%” option3=”16.50%” option4=”1.36%” correct=”option2″]
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
[amp_mcq option1=”return on earning power” option2=”return on investment” option3=”return on common equity” option4=”return on interest” correct=”option3″]
36. __________ is concerned with the acquisition, financing, and management of assets with some overall goal in mind.
[amp_mcq option1=”Financial management” option2=”Profit maximization” option3=”Agency theory” option4=”Social responsibility” correct=”option1″]
37. According to exercise value and option price, market value of option will be zero when
[amp_mcq option1=”stock price is maximum” option2=”option price is zero” option3=”stock price is zero” option4=”stock price is minimum” correct=”option3″]
38. Correct measure of risk of stock is called
[amp_mcq option1=”alpha” option2=”beta” option3=”variance” option4=”market relevance” correct=”option2″]
39. Process in which stockholders transfer right to vote to any other person is classified as
[amp_mcq option1=”proxy” option2=”transfer process” option3=”voting process” option4=”assigning right process” correct=”option1″]
40. Professionals such as doctors, accountants and lawyers often make corporations are classified as
[amp_mcq option1=”general professionals” option2=”Professional Corporation” option3=”professional association” option4=”Both B and C” correct=”option2″]