Financial management

31. The bonus issue is made to make the nominal value and the __________ value of the shares of the company.

Face
Market
Stock
Real

Detailed SolutionThe bonus issue is made to make the nominal value and the __________ value of the shares of the company.

32. Limited partners in partnership business have

no control
whole control
corporate authority
general authority

Detailed SolutionLimited partners in partnership business have

33. The expansion of EAR is?

equivalent annual rate
equivalent annuity rate
equally applied rate
equal advance rate

Detailed SolutionThe expansion of EAR is?

34. Set of projects or set of investments usually maximize firm value is classified as

optimal capital budget
minimum capital budget
maximum capital budget
greater capital budget

Detailed SolutionSet of projects or set of investments usually maximize firm value is classified as

35. In case of divisible projects, which of the following can be used to attain maximum NPV?

Feasibility Set Approach
Internal Rate of Return
Profitability Index Approach
Any of the above

Detailed SolutionIn case of divisible projects, which of the following can be used to attain maximum NPV?

36. In financial markets, period of maturity more than five years of financial instruments is classified as

intermediate term
capital term
short-term
long-term

Detailed SolutionIn financial markets, period of maturity more than five years of financial instruments is classified as

37. In weighted average cost of capital, capital components are funds that usually offer by

stock market
investors
capitalist
exchange index

Detailed SolutionIn weighted average cost of capital, capital components are funds that usually offer by

38. Cheques deposited in bank may not be available for immediate use due to:

Payment Float
Receipt Float
Net Float
Playing the Float

Detailed SolutionCheques deposited in bank may not be available for immediate use due to:

39. In calculation of internal rate of return, an assumption states that received cash flow from project must

be reinvested
not be reinvested
be earned
not be earned

Detailed SolutionIn calculation of internal rate of return, an assumption states that received cash flow from project must

40. Betas that are constantly adjusted to reflect changes in capital structure and firms operations are classified as

fundamental structure
fundamental adjustment
fundamental betas
fundamental operations

Detailed SolutionBetas that are constantly adjusted to reflect changes in capital structure and firms operations are classified as

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