[amp_mcq option1=”final stock” option2=”expected stock” option3=”expected final stock price” option4=”final stock price” correct=”option4″]
Financial management
42. The amount of the temporary working capital __________.
[amp_mcq option1=”keeps on fluctuating from time to time” option2=”remains constant for all times” option3=”financed through long term services” option4=”none of the above.” correct=”option1″]
Detailed SolutionThe amount of the temporary working capital __________.
43. Document in a corporation which consists of amount of stock, name and addresses of directors is classified as
[amp_mcq option1=”liability plan” option2=”stock planning” option3=”corporation paperwork” option4=”charter” correct=”option4″]
44. In weighted average cost of capital, rising in interest rate leads to
[amp_mcq option1=”increase in cost of debt” option2=”increase capital structure” option3=”decrease in cost of debt” option4=”decrease capital structure” correct=”option1″]
Detailed SolutionIn weighted average cost of capital, rising in interest rate leads to
45. Coefficient of beta is used to measure stock volatility
[amp_mcq option1=”coefficient of market” option2=”relative to market” option3=”irrelative to market” option4=”same with market” correct=”option2″]
Detailed SolutionCoefficient of beta is used to measure stock volatility
46. The rate of return on investment ____ with the shortage of working capital.
[amp_mcq option1=”falls” option2=”going” option3=”constant” option4=”change” correct=”option1″]
Detailed SolutionThe rate of return on investment ____ with the shortage of working capital.
47. An investor who writes stock call options in his own portfolio is classified as
[amp_mcq option1=”due option” option2=”covered option” option3=”undue option” option4=”uncovered option” correct=”option2″]
Detailed SolutionAn investor who writes stock call options in his own portfolio is classified as
48. Under the provisions of AS-19 ‘Leases’, a leased asset is shown in the balance sheet of:
[amp_mcq option1=”Manufacturer” option2=”Lessor” option3=”Lessee” option4=”Financing bank” correct=”option3″]
49. In mutually exclusive projects, project which is selected for comparison with others must have
[amp_mcq option1=”higher net present value” option2=”lower net present value” option3=”zero net present value” option4=”all of above” correct=”option1″]
50. In order to calculate the proportion of equity financing used by the company, the following should be used:
[amp_mcq option1=”Authorised Share Capital” option2=”Equity Share Capital plus Reserves and Surplus” option3=”Equity Share Capital plus Preference Share Capital” option4=”Equity Share Capital plus Long-term Debt” correct=”option2″]