Financial management

31. Rate of return that an investment provides its investor is classified as

investment return rate
internal rate of return
international rate of return
intrinsic rate of return

Detailed SolutionRate of return that an investment provides its investor is classified as

32. Complex statistical and mathematical theory is an approach, which is classified as

arbitrage pricing theory
arbitrage risk theory
arbitrage dividend theory
arbitrage market theory

Detailed SolutionComplex statistical and mathematical theory is an approach, which is classified as

33. Accounts payable, accruals and notes payables are listed on balance sheet as

accrued liabilities
current liabilities
accumulated liabilities
non-current liabilities

Detailed SolutionAccounts payable, accruals and notes payables are listed on balance sheet as

34. Feasibility Set Approach to Capital Rationing can be applied in:

Accept-reject situations
Divisible projects
Mutually exclusive projects
None of the above

Detailed SolutionFeasibility Set Approach to Capital Rationing can be applied in:

35. An interest rate which is quoted by brokers, banks and other financial institutions is classified as

annuity rate
perpetuity rate
nominal rate
external rate of return

Detailed SolutionAn interest rate which is quoted by brokers, banks and other financial institutions is classified as

36. Long term fund sources are ___________.

Retained earnings
Debentures
Share capital
All of the above

Detailed SolutionLong term fund sources are ___________.

37. Relationship between Economic Value Added (EVA) and Net Present Value (NPV) is considered as

valued relationship
economic relationship
direct relationship
inverse relationship

Detailed SolutionRelationship between Economic Value Added (EVA) and Net Present Value (NPV) is considered as

38. Wages and salaries of employees which company owns in this accounts are called

accrued expenses
accruals accounts
Both A and B
zero liabilities

Detailed SolutionWages and salaries of employees which company owns in this accounts are called

39. If profit margin = 4.5% and total assets turnover = 1.8% then return on assets DuPont equation would be

2.50%
8.10%
0.40%
4.00%

Detailed SolutionIf profit margin = 4.5% and total assets turnover = 1.8% then return on assets DuPont equation would be

40. Real Discount Rate is equal to:

(1 + Inf. Rate) (1 + Money D Rate) - 1
(1 + Money D Rate) + (1 + Inf. Rate) - 1
(1 + Money D Rate) 4 - (1 + Inf. Rate) - 1
(1 + Money D Rate) - (1 + Inf. Rate) - 1

Detailed SolutionReal Discount Rate is equal to:

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