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