Financial management

[amp_mcq option1=”Rs 18.00″ option2=”Rs 36.00″ option3=”Rs 50.00″ option4=”Rs 55.00″ correct=”option1″]

Detailed SolutionCapital gain is Rs 3 and capital gains yield is 6% then beginning price will be

[amp_mcq option1=”balance sheet and income statement” option2=”statement of retained earning” option3=”statement of cash flows” option4=”all of above” correct=”option4″]

Detailed SolutionType of basic financial statements consist of

[amp_mcq option1=”the tax treatment of capital gains” option2=”the cumulative wealth effect” option3=”dividends” option4=”profits” correct=”option3″]

Detailed SolutionIf the Dow Jones Industrials had a price appreciation of 6 percent one year and yet Total return for the year was 11 percent; the difference would be due to___________.

[amp_mcq option1=”equal to zero” option2=”greater than expected growth rate” option3=”less than expected growth rate” option4=”equal to expected growth rate” correct=”option4″]

Detailed SolutionIn expected rate of return for constant growth, an expected yield on capital must be

[amp_mcq option1=”altering the returns on individual assets” option2=”weighting the portfolio return by the allocation” option3=”assuring diversification” option4=”increasing the investor’s use of mutual funds” correct=”option2″]

Detailed SolutionAsset allocation affects the investor’s return by______________.

[amp_mcq option1=”riskless” option2=”market risk” option3=”random risk” option4=”company-specific risk” correct=”option4″]

Detailed SolutionNon-systematic risk is also known as_____________.

[amp_mcq option1=”super refund provision” option2=”super put redemption” option3=”make-whole call provision” option4=”super call provision” correct=”option3″]

Detailed SolutionCall provision practiced by company which states that call price will be paid is classified as

[amp_mcq option1=”market price” option2=”intrinsic price” option3=”extrinsic price” option4=”fundamental price” correct=”option1″]

Detailed SolutionPrice of stock that companies observe in financial markets is called

[amp_mcq option1=”negative numbers” option2=”positive numbers” option3=”hurdle number” option4=”relative number” correct=”option1″]

Detailed SolutionCash outflows are costs of project and are represented by

[amp_mcq option1=”weighted cost of capital” option2=”component cost of preferred stock” option3=”transaction cost of preferred stock” option4=”financing of preferred stock” correct=”option1″]

Detailed SolutionCost which is used to calculate weighted average cost of capital is classified as