Financial management

41. Total assets divided common equity is a formula uses for calculating

equity multiplier
graphical multiplier
turnover multiplier
stock multiplier

Detailed SolutionTotal assets divided common equity is a formula uses for calculating

42. While calculating the weighted average cost of capital, market value weights are preferred because ____________.

Book value weights are historical in nature
This is in conformity with the definition of cost of capital as the investors minimum required rate of return
Book value weights fluctuate violently
Market value weights are fairly consistent over a period of time.

Detailed SolutionWhile calculating the weighted average cost of capital, market value weights are preferred because ____________.

43. The formula of EBIT = ________

Sales - Variable cost
Contribution - Fixed cost
Sales - Fixed cost
All the above

Detailed SolutionThe formula of EBIT = ________

44. Mumbai stock exchange was recognized on a permanent basis in___________.

1950
1956
1957
1965

Detailed SolutionMumbai stock exchange was recognized on a permanent basis in___________.

45. Standard deviation is divided by expected rate of return is used to calculate

coefficient of variation
coefficient of deviation
coefficient of standard
coefficient of return

Detailed SolutionStandard deviation is divided by expected rate of return is used to calculate

46. Cost of capital may be defined as:

Weighted Average cost of all debts
Rate of Return expected by Equity Shareholders
Average IRR of the Projects of the firm
Minimum Rate of Return that the firm should earn

Detailed SolutionCost of capital may be defined as:

47. Investment bankers perform the following role ___________.

market new stock and bond issues for firms
provide advice to the firms as to market conditions, price, etc
design securities with desirable properties
all of the above

Detailed SolutionInvestment bankers perform the following role ___________.

48. Two alternative expected returns are compared with help of

coefficient of variation
coefficient of deviation
coefficient of standard
coefficient of return

Detailed SolutionTwo alternative expected returns are compared with help of

49. Rate charged by bank 12.5% on credit loans and 3% semi-annually on instalment loans is considered as

periodic rate
perpetuity rate of return
annual rate
annuity rate of return

Detailed SolutionRate charged by bank 12.5% on credit loans and 3% semi-annually on instalment loans is considered as

50. Net Profit Ratio Signifies:

Operational Profitability
Liquidity Position
Solvency
Profit

Detailed SolutionNet Profit Ratio Signifies:

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