[amp_mcq option1=”transaction approach” option2=”replacement chain approach” option3=”common life approach” option4=”Both B and C” correct=”option3″]
Financial management
32. Treasury bonds are exposed to additional risks that are included
[amp_mcq option1=”reinvestment risk” option2=”interest rate risk” option3=”investment risk” option4=”Both A and B” correct=”option2″]
Detailed SolutionTreasury bonds are exposed to additional risks that are included
33. In financial markets, period of maturity within one to five years of financial instruments is classified as
[amp_mcq option1=”short-term” option2=”long-term” option3=”intermediate term” option4=”capital term” correct=”option3″]
34. Which of the following short term securities is inappropriate for an individual, desiring funds for financial emergencies?
[amp_mcq option1=”treasury bills” option2=”certificates of deposit” option3=”financial futures” option4=”savings accounts” correct=”option3″]
35. One of the statements given below provides evidence for the semi-strongly efficient form.
[amp_mcq option1=”Low P/E ratio effect” option2=”The size effect” option3=”Effect on the stock split” option4=”Weekend effect” correct=”option1″]
36. Pre-emptive right of common stockholders are necessarily included in company
[amp_mcq option1=”laws” option2=”purchase chart” option3=”corporate charter” option4=”selling charter” correct=”option3″]
Detailed SolutionPre-emptive right of common stockholders are necessarily included in company
37. rate which is divided by compounding periods to calculate periodic rate must be
[amp_mcq option1=”annuity return” option2=”deferred annuity return” option3=”nominal rate” option4=”semi-annual discount rate” correct=”option3″]
Detailed Solutionrate which is divided by compounding periods to calculate periodic rate must be
38. Net income is Rs 2250 and noncash charges are Rs 1150 then net cash flow would be
[amp_mcq option1=”Rs 1,100.00″ option2=”Rs 3,400.00″ option3=”Rs 2,200.00″ option4=”Rs 3,500.00″ correct=”option3″]
Detailed SolutionNet income is Rs 2250 and noncash charges are Rs 1150 then net cash flow would be
39. If future return on common stock is 19% and rate on T-bonds is 11% then current market risk premium will be
[amp_mcq option1=”Rs 30.00″ option2=”30.00%” option3=”8.00%” option4=”Rs 8.00″ correct=”option3″]
40. In call provision, it is stated that company will pay to issue an amount
[amp_mcq option1=”higher than par value” option2=”lower than par value” option3=”equal to par value” option4=”zero to par value” correct=”option3″]
Detailed SolutionIn call provision, it is stated that company will pay to issue an amount