Financial management Archives - Page 4 of 112 - MCQ and Quiz for Exams

31. Graph which is plotted for projected net present value and capital rates is called

net loss profile

net gain profile

net future value profile

net present value profile

Detailed SolutionGraph which is plotted for projected net present value and capital rates is called

32. If a firm has ke > r the Walter’s Model suggests for:

0% Payout

100% Payout

50% Payout

25% Payout

Detailed SolutionIf a firm has ke > r the Walter’s Model suggests for:

33. Which of the following is not a benefit of carrying inventories?

Reduction in ordering cost

Avoiding lost sales

Reducing carrying cost

Avoiding production shortages

Detailed SolutionWhich of the following is not a benefit of carrying inventories?

34. An information uses by investors for expecting future earnings is all recorded in

five years report

annual report

stock report

exchange report

Detailed SolutionAn information uses by investors for expecting future earnings is all recorded in

35. Type of bonds that pays no coupon payment but provides little appreciation are classified as

depreciated bond

interest bond

zero coupon bond

appreciation bond

Detailed SolutionType of bonds that pays no coupon payment but provides little appreciation are classified as

36. Which of the following is not a part of credit policy?

Collection Effort

Cash Discount

Credit Standard

Paying Practices of Debtors

Detailed SolutionWhich of the following is not a part of credit policy?

37. Which of the following is true regarding the expected return of a portfolio?

It is a weighted average only for stock portfolios

It can only be positive

It can never be above the highest individual return

All of the above are true

Detailed SolutionWhich of the following is true regarding the expected return of a portfolio?

38. Indexed bonds that are issued by linking payments to inflation are classified as

treasury inflation protected securities

premium protected securities

risk protected securities

liquidity protected securities

Detailed SolutionIndexed bonds that are issued by linking payments to inflation are classified as

39. In case of Net Income Approach, the Cost of equity is:

Constant

Increasing

Decreasing

None of the above

Detailed SolutionIn case of Net Income Approach, the Cost of equity is:

40. Claim against assets are represented by

saved earning

retained earnings

maintained earnings

saving account earning

Detailed SolutionClaim against assets are represented by

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