[amp_mcq option1=”historical betas” option2=”adjusted betas” option3=”standard betas” option4=”varied betas” correct=”option2″]
Detailed SolutionFormula written as 0.67(Historical Beta) + 0.35(1.0) is used to calculate
Financial management
42. Present value of dividends which is expected to be provided in future is classified as an
[amp_mcq option1=”intrinsic value of stock” option2=”extrinsic value of stock” option3=”intrinsic bonds” option4=”extrinsic bonds” correct=”option1″]
43. For investors, steeper slope of indifference curve shows more
[amp_mcq option1=”risk averse investor” option2=”risk taker investor” option3=”in differential investor” option4=”ineffective investment” correct=”option1″]
Detailed SolutionFor investors, steeper slope of indifference curve shows more
44. According to capital asset pricing model assumptions, variances, expected returns and covariance of all assets are
[amp_mcq option1=”identical” option2=”not identical” option3=”fixed” option4=”variable” correct=”option2″]
45. Which of the following would not be considered as capital market security?
[amp_mcq option1=”A corporate bond” option2=”A common stock” option3=”A 6-month Treasury bill” option4=”A mutual fund share” correct=”option3″]
Detailed SolutionWhich of the following would not be considered as capital market security?
46. Which of the following is true of Net Income Approach?
[amp_mcq option1=”VF = VE + VD” option2=”VE = VF + VD” option3=”VD = VF + VE” option4=”VF = VE – VD” correct=”option1″]
Detailed SolutionWhich of the following is true of Net Income Approach?
47. Other factors held constant, but lesser project liquidity is because of
[amp_mcq option1=”shorter payback period” option2=”greater payback period” option3=”less project return” option4=”greater project return” correct=”option2″]
Detailed SolutionOther factors held constant, but lesser project liquidity is because of
48. Effective cost of debentures is _________ as compared to shares.
[amp_mcq option1=”higher” option2=”lower” option3=”equal” option4=”medium” correct=”option2″]
Detailed SolutionEffective cost of debentures is _________ as compared to shares.
49. A company may raise capital from the primary market through _____________.
[amp_mcq option1=”Public issue” option2=”Rights issue” option3=”Bought out deals” option4=”All of the above” correct=”option4″]
Detailed SolutionA company may raise capital from the primary market through _____________.
50. In estimating value of cash flows, compounded future value is classified as its
[amp_mcq option1=”terminal value” option2=”existed value” option3=”quit value” option4=”relative value” correct=”option1″]
Detailed SolutionIn estimating value of cash flows, compounded future value is classified as its