Financial management

41. Which of the following is studied with the help of financial leverage?

Marketing Risk
Interest Rate Risk
Foreign Exchange Risk
Financing Risk

Detailed SolutionWhich of the following is studied with the help of financial leverage?

42. Cost which has occurred already and not affected by decisions is classified as

sunk cost
occurred cost
weighted cost
mean cost

Detailed SolutionCost which has occurred already and not affected by decisions is classified as

43. Dividend expected on stock during coming year is classified as

current dividend yield
expected dividend yield
yearly dividend
past yield

Detailed SolutionDividend expected on stock during coming year is classified as

44. Stock option is considered more valuable in situation when stock have

price hike in market
market stability
not volatile
highly volatile

Detailed SolutionStock option is considered more valuable in situation when stock have

45. In stock option, a little chance exists for large gain on stock when price of stock

have volatile movement
moves freely
rarely moves
stays same

Detailed SolutionIn stock option, a little chance exists for large gain on stock when price of stock

46. The fixed proportion of working capital should be generally financed from the ____ capital sources.

fixed
variable
semi-variable
borrowed

Detailed SolutionThe fixed proportion of working capital should be generally financed from the ____ capital sources.

47. Cost of Capital refers to:

Flotation Cost
Dividend
Required Rate of Return
None of the above

Detailed SolutionCost of Capital refers to:

48. Mr. A is a daring portfolio manager. He wants to increase the return in his portfolio. He should choose stocks from_______________.

defensive industry
industry at a growth stage
industry in the maturity period
industry with more export potential

Detailed SolutionMr. A is a daring portfolio manager. He wants to increase the return in his portfolio. He should choose stocks from_______________.

49. The term capital structure denotes:

Total of Liability side of Balance Sheet
Equity Funds, Preference Capital and Long-term Debt
Total Shareholders Equity
Types of Capital issued by a Company

Detailed SolutionThe term capital structure denotes:

50. Betas tend to move towards 1.0 with passage of time are classified as

standard betas
varied betas
historical betas
adjusted betas

Detailed SolutionBetas tend to move towards 1.0 with passage of time are classified as

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