Financial management

41. A right which controls and prevents transfer from current stockholders to other new stockholders is considered as

corporate charter
selling charter
laws
purchase chart

Detailed SolutionA right which controls and prevents transfer from current stockholders to other new stockholders is considered as

42. An annuity with an extended life is classified as

extended life
perpetuity
deferred perpetuity
due perpetuity

Detailed SolutionAn annuity with an extended life is classified as

43. Coupon rate of convertible bond is

higher
lower
variable
stable

Detailed SolutionCoupon rate of convertible bond is

44. _______ is example of financial intermediaries.

Commercial banks
Investment bank
Insurance companies
All of the above

Detailed Solution_______ is example of financial intermediaries.

45. Concentration Banking helps in:

Reducing Idle Bank Balance
Increasing Collection
Increasing Creditors
Reducing Bank Transactions

Detailed SolutionConcentration Banking helps in:

46. Gordon’s Model of dividend relevance is same as:

No-growth Model of equity valuation
Constant growth Model of equity valuation
Price-Earning Ratio
Inverse of Price Earnings Ratio

Detailed SolutionGordon’s Model of dividend relevance is same as:

47. EBIT is usually the same thing as.

funds provided by operations
earnings before taxes
net income
operating profit

Detailed SolutionEBIT is usually the same thing as.

48. In binomial approach of option pricing model, value of stock is subtracted from call option obligation value to calculate

current value of portfolio
future value of portfolio
put option value
call option value

Detailed SolutionIn binomial approach of option pricing model, value of stock is subtracted from call option obligation value to calculate

49. Firm’s Cost of Capital is the average cost of:

All sources
All borrowings
Share capital
Share Bonds & Debentures

Detailed SolutionFirm’s Cost of Capital is the average cost of:

50. Payment if it is divided with interest rate will be formula of

future value of perpetuity
present value of perpetuity
due perpetuity
deferred perpetuity

Detailed SolutionPayment if it is divided with interest rate will be formula of

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