[amp_mcq option1=”negotiable certificate of deposit” option2=”mutual funds” option3=”U.S treasury bills” option4=”commercial paper” correct=”option4″]
Financial management
42. After-the-fact rate of return often consider as realized or actual can be denoted
[amp_mcq option1=”s hat r” option2=”r bar s” option3=”r hat s” option4=”s bar r” correct=”option2″]
Detailed SolutionAfter-the-fact rate of return often consider as realized or actual can be denoted
43. If ‘r’ = ‘ke’, than MP by Walter’s Model and Gordon’s Model for different payout ratios would be:
[amp_mcq option1=”Unequal” option2=”Zero” option3=”Equal” option4=”Negative” correct=”option3″]
44. Firms that specialize in helping companies raise capital by selling securities are called ________.
[amp_mcq option1=”commercial banks” option2=”investment banks” option3=”savings banks” option4=”credit unions” correct=”option2″]
45. __________ is the most important investment decision because it determines the risk-return characteristics of the portfolio.
[amp_mcq option1=”Hedging” option2=”Market timing” option3=”Performance measurement” option4=”Asset allocation” correct=”option4″]
46. Formula such as net income available for common stockholders divided by total assets is used to calculate
[amp_mcq option1=”return on total assets” option2=”return on total equity” option3=”return on debt” option4=”return on sales” correct=”option1″]
47. In investment returns, a received amount is subtracted from an invested amount which is used to calculate
[amp_mcq option1=”dollar received” option2=”dollar return” option3=”dollar invested” option4=”return percentage” correct=”option3″]
48. Legal document in which rights of issuing corporation and bondholder’s state is classified as
[amp_mcq option1=”legal rights classification” option2=”indenture” option3=”ownership statement” option4=”guarantee statement” correct=”option2″]
49. Second mortgages pledged against bond’s security are referred as
[amp_mcq option1=”loan mortgages” option2=”medium mortgages” option3=”senior mortgages” option4=”junior mortgages” correct=”option4″]
Detailed SolutionSecond mortgages pledged against bond’s security are referred as
50. Cost of Redeemable Preference Share Capital is:
[amp_mcq option1=”Rate of Dividend” option2=”After Tax Rate of Dividend” option3=”Discount Rate that equates PV of inflows and outflows relating to capital” option4=”None of the above” correct=”option3″]
Detailed SolutionCost of Redeemable Preference Share Capital is: