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

31. First step in calculation of net present value is to find out

present value of equity

future value of equity

present value cash flow

future value of cash flow

Detailed SolutionFirst step in calculation of net present value is to find out

32. Rate of interest which is usually discussed by investors whenever rate of return is discussed is classified as

yield to maturity

yield to return

yield to earning

yield to investors

Detailed SolutionRate of interest which is usually discussed by investors whenever rate of return is discussed is classified as

33. The material wealth of a society is equal to the sum of _________.

all financial assets

all real assets

all financial and real assets

all physical assets

Detailed SolutionThe material wealth of a society is equal to the sum of _________.

34. Markets which deal with buying and selling of bonds, mortgages, notes and stocks are considered as

financial instruments

financial asset markets

physical asset markets

easy markets

Detailed SolutionMarkets which deal with buying and selling of bonds, mortgages, notes and stocks are considered as

35. Which of the following techniques of project appraisal does not consider the time value of money?

Benefit cost ratio

Net present value

Internal rate of return

Accounting Rate of Return

Detailed SolutionWhich of the following techniques of project appraisal does not consider the time value of money?

36. Lottery payoffs and payment for rental apartments are examples of

lump sum amount

deferred annuity

annuity due

payment fixed series

Detailed SolutionLottery payoffs and payment for rental apartments are examples of

37. Long-term equity anticipation security is usually classified as

short-term options

long-term options

short money options

yearly call

Detailed SolutionLong-term equity anticipation security is usually classified as

38. Operating leverage = ______.

contribution / EBIT

contribution / EBT

contribution / total expenses

contribution / operating PBT

Detailed SolutionOperating leverage = ______.

39. MM Model of Dividend irrelevance uses arbitrage between:

Dividend and Bonus

Dividend and Capital Issue

Profit and Investment

None of the above

Detailed SolutionMM Model of Dividend irrelevance uses arbitrage between:

40. If a firm has a DOL of 2.8, it means:

If sales increase by 2.8%, the EBIT will increase by 1%

If EBIT increase by 2.896, the EPS will increase by 1%

If sales rise by 1%, EBIT will rise by 2.8%

None of the above

Detailed SolutionIf a firm has a DOL of 2.8, it means:

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