[amp_mcq option1=”preferred risk” option2=”exchange rate risk” option3=”country risk” option4=”foreign risk” correct=”option2″]
Financial management
42. Which of the following is the assumption of the MM model on dividend policy?
[amp_mcq option1=”The firm is an all-equity firm” option2=”The investments of the firm are financed solely by retained earnings” option3=”The firm has an infinite life” option4=”None of the above” correct=”option3″]
Detailed SolutionWhich of the following is the assumption of the MM model on dividend policy?
43. Cost of new debt or marginal debt is also classified as
[amp_mcq option1=”historical rate” option2=”embedded rate” option3=”marginal rate” option4=”Both A and B” correct=”option3″]
Detailed SolutionCost of new debt or marginal debt is also classified as
44. The relevant risk for a well-diversified portfolio is____________.
[amp_mcq option1=”interest rate risk” option2=”inflation risk” option3=”business risk” option4=”market risk” correct=”option4″]
Detailed SolutionThe relevant risk for a well-diversified portfolio is____________.
45. EBIT means _____________.
[amp_mcq option1=”Operating Income” option2=”Operating Profit” option3=”Earnings before interest and tax” option4=”All of the above” correct=”option1″]
46. If an expected final stock price is Rs 85 and an original investment is Rs 70 then value of expected capital gain would be
[amp_mcq option1=”Rs 15.00″ option2=”-Rs 15.00″ option3=”Rs 155.00″ option4=”-Rs 155.00″ correct=”option1″]
47. In time value of money, periodic rate is
[amp_mcq option1=”not shown on timeline” option2=”shown on timeline” option3=”multiplied on timeline” option4=”divided on timeline” correct=”option1″]
48. Which of the following is related to Receivables Management?
[amp_mcq option1=”Cash Budget” option2=”Economic Order Quantity” option3=”Ageing Schedule” option4=”All of the above” correct=”option4″]
Detailed SolutionWhich of the following is related to Receivables Management?
49. Intangible assets such as copyrights, trademarks and patents are applicable for
[amp_mcq option1=”depreciation” option2=”amortization” option3=”stock amortization” option4=”perishable assets” correct=”option2″]
Detailed SolutionIntangible assets such as copyrights, trademarks and patents are applicable for
50. A short-term lease which is often cancellable is known as:
[amp_mcq option1=”Finance Lease” option2=”Net Lease” option3=”Operating Lease” option4=”Leverage Lease” correct=”option3″]
Detailed SolutionA short-term lease which is often cancellable is known as: