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

31. First step in determining an efficient portfolio is to consider

set of attainable portfolios

set of unattainable portfolios

set of attributable portfolios

set of attributable portfolios

Detailed SolutionFirst step in determining an efficient portfolio is to consider

32. Bonds issued by government and backed by U.S government are classified as

issued security

treasury bonds

U.S bonds

return security

Detailed SolutionBonds issued by government and backed by U.S government are classified as

33. Preferred stock dividends must be paid on common stock and must have

fixed amount of dividends

fixed amount of shares

variable amount of dividends

variable amount of shares

Detailed SolutionPreferred stock dividends must be paid on common stock and must have

34. A risk which is classified as its contribution to risk of portfolio is classified as

classified risk

contributed risk

irrelevant risk

relevant risk

Detailed SolutionA risk which is classified as its contribution to risk of portfolio is classified as

35. Right of common stockholders to purchase additional stock issued by company is classified as

common right

pre-emptive right

purchase right

selling right

Detailed SolutionRight of common stockholders to purchase additional stock issued by company is classified as

36. Market risk is best measured by the____________.

alpha

beta

standard deviation

coefficient of variation

Detailed SolutionMarket risk is best measured by the____________.

37. Yield on Treasury bill with a maturity is classified as a risk free rate but must be equal to an

option closing price

option beginning price

option expiration

option model

Detailed SolutionYield on Treasury bill with a maturity is classified as a risk free rate but must be equal to an

38. The objective of financial management is to ______________.

generate the maximum net profit

generate the maximum retained earnings

generate the maximum wealth for its shareholders

generate maximum funds for the firm at the least cost.

Detailed SolutionThe objective of financial management is to ______________.

39. The dividend-payout ratio is equal to __________.

the dividend yield plus the capital gains yield

dividends per share divided by earnings per share

dividends per share divided by par value per share

dividends per share divided by current price per share.

Detailed SolutionThe dividend-payout ratio is equal to __________.

40. Subset of primary market where firms go publicly by issuing stocks in financial markets is considered as

initial public offering market

stock market

issuance market

First stock market

Detailed SolutionSubset of primary market where firms go publicly by issuing stocks in financial markets is considered as

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