Financial management

31. Capital gain is Rs 3 and capital gains yield is 6% then beginning price will be

Rs 18.00
Rs 36.00
Rs 50.00
Rs 55.00

Detailed SolutionCapital gain is Rs 3 and capital gains yield is 6% then beginning price will be

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32. Type of basic financial statements consist of

balance sheet and income statement
statement of retained earning
statement of cash flows
all of above

Detailed SolutionType of basic financial statements consist of

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33. If the Dow Jones Industrials had a price appreciation of 6 percent one year and yet Total return for the year was 11 percent; the difference would be due to___________.

the tax treatment of capital gains
the cumulative wealth effect
dividends
profits

Detailed SolutionIf the Dow Jones Industrials had a price appreciation of 6 percent one year and yet Total return for the year was 11 percent; the difference would be due to___________.

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34. In expected rate of return for constant growth, an expected yield on capital must be

equal to zero
greater than expected growth rate
less than expected growth rate
equal to expected growth rate

Detailed SolutionIn expected rate of return for constant growth, an expected yield on capital must be

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35. Asset allocation affects the investor’s return by______________.

altering the returns on individual assets
weighting the portfolio return by the allocation
assuring diversification
increasing the investor's use of mutual funds

Detailed SolutionAsset allocation affects the investor’s return by______________.

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36. Non-systematic risk is also known as_____________.

riskless
market risk
random risk
company-specific risk

Detailed SolutionNon-systematic risk is also known as_____________.

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37. Call provision practiced by company which states that call price will be paid is classified as

super refund provision
super put redemption
make-whole call provision
super call provision

Detailed SolutionCall provision practiced by company which states that call price will be paid is classified as

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38. Price of stock that companies observe in financial markets is called

market price
intrinsic price
extrinsic price
fundamental price

Detailed SolutionPrice of stock that companies observe in financial markets is called

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39. Cash outflows are costs of project and are represented by

negative numbers
positive numbers
hurdle number
relative number

Detailed SolutionCash outflows are costs of project and are represented by

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40. Cost which is used to calculate weighted average cost of capital is classified as

weighted cost of capital
component cost of preferred stock
transaction cost of preferred stock
financing of preferred stock

Detailed SolutionCost which is used to calculate weighted average cost of capital is classified as

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