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

31. Value of payment is Rs 25 and an interest rate is 2%, then present value will be

Rs 12.54

Rs 12,500.00

Rs 12,504.00

Rs 8,400.00

Detailed SolutionValue of payment is Rs 25 and an interest rate is 2%, then present value will be

32. Commercial paper are generally issued at a price:

Equal to face value

More than face value

Less than face value

Equal to redemption value

Detailed SolutionCommercial paper are generally issued at a price:

33. Which of the following is an argument for the relevance of dividends?

Informational content

Reduction of uncertainty

Some investors' preference for current income

All of the above.

Detailed SolutionWhich of the following is an argument for the relevance of dividends?

34. Price earning ratio and price by cash flow ratio are classified as

marginal ratios

equity ratios

return ratios

market value ratios

Detailed SolutionPrice earning ratio and price by cash flow ratio are classified as

35. Which of the following is not a characteristic of investments companies?

pooled investing

diversification

managed portfolios

reduced expenses

Detailed SolutionWhich of the following is not a characteristic of investments companies?

36. In case of Gordon’s Model, the MP for zero payout is zero. It means that:

Shares are not traded

Shares available free of cost

Investors are not ready to offer any price

None of the above

Detailed SolutionIn case of Gordon’s Model, the MP for zero payout is zero. It means that:

37. A premium charged by lenders for securities that cannot be converted into cash is classified as

required premium

liquidity premium

marketability premium

Both B and C

Detailed SolutionA premium charged by lenders for securities that cannot be converted into cash is classified as

38. In capital budgeting, a technique which is based upon discounted cash flow is classified as

net present value method

net future value method

net capital budgeting method

net equity budgeting method

Detailed SolutionIn capital budgeting, a technique which is based upon discounted cash flow is classified as

39. In calculation of time value of money, ‘PMT’ represents

present money tracking

payment

payment money tracking

future money payment

Detailed SolutionIn calculation of time value of money, ‘PMT’ represents

40. According to put call parity relationship, call option plus present value of exercise price minus stock is to calculate

present value of option

call option

put option

future value of option

Detailed SolutionAccording to put call parity relationship, call option plus present value of exercise price minus stock is to calculate

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