Financial management

41. Method of stock valuation which is multiple of earning per share, book value and net income is classified as

stock multiple analysis
dividend multiple analysis
market multiple analysis
stock and multiple analysis

Detailed SolutionMethod of stock valuation which is multiple of earning per share, book value and net income is classified as

42. Shares having no face value are known as

no par stock
at par stock
equal stock
debt equity stock

Detailed SolutionShares having no face value are known as

43. Type of financial security in which firms do not borrow money rather lease their assets is classified as

leases
preferred stocks
common stocks
corporate stocks

Detailed SolutionType of financial security in which firms do not borrow money rather lease their assets is classified as

44. A Sound Capital Budgeting technique is based on:

Cash Flows
Accounting Profit
Interest Rate on Borrowings
Last Dividend Paid

Detailed SolutionA Sound Capital Budgeting technique is based on:

45. According to Black Schools model, stocks with call option pays the

dividends
no dividends
current price
past price

Detailed SolutionAccording to Black Schools model, stocks with call option pays the

46. Short term sources are

Bank credit
Public deposit
Commercial papers
All of the above

Detailed SolutionShort term sources are

47. Risk on a stock portfolio which can be reduced by placing it in diversified portfolio is classified as

stock risk
portfolio risk
diversifiable risk
market risk

Detailed SolutionRisk on a stock portfolio which can be reduced by placing it in diversified portfolio is classified as

48. For a constant EBIT, if the debt level is further increased then:

EPS will always increase
EPS may increase
EPS will never increase
None of the above

Detailed SolutionFor a constant EBIT, if the debt level is further increased then:

49. Market risk and diversifiable risk are two components of

stock's risk
portfolio risk
expected return
stock return

Detailed SolutionMarket risk and diversifiable risk are two components of

50. Business owned by a single person in unincorporated way is called

proprietorship
personal business
Private Corporation
personal ownership

Detailed SolutionBusiness owned by a single person in unincorporated way is called

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