Financial management

41. A formula such as an original investment plus an expected capital gain is used to calculate

final stock
expected stock
expected final stock price
final stock price

Detailed SolutionA formula such as an original investment plus an expected capital gain is used to calculate

42. The amount of the temporary working capital __________.

keeps on fluctuating from time to time
remains constant for all times
financed through long term services
none of the above.

Detailed SolutionThe amount of the temporary working capital __________.

43. Document in a corporation which consists of amount of stock, name and addresses of directors is classified as

liability plan
stock planning
corporation paperwork
charter

Detailed SolutionDocument in a corporation which consists of amount of stock, name and addresses of directors is classified as

44. In weighted average cost of capital, rising in interest rate leads to

increase in cost of debt
increase capital structure
decrease in cost of debt
decrease capital structure

Detailed SolutionIn weighted average cost of capital, rising in interest rate leads to

45. Coefficient of beta is used to measure stock volatility

coefficient of market
relative to market
irrelative to market
same with market

Detailed SolutionCoefficient of beta is used to measure stock volatility

46. The rate of return on investment ____ with the shortage of working capital.

falls
going
constant
change

Detailed SolutionThe rate of return on investment ____ with the shortage of working capital.

47. An investor who writes stock call options in his own portfolio is classified as

due option
covered option
undue option
uncovered option

Detailed SolutionAn investor who writes stock call options in his own portfolio is classified as

48. Under the provisions of AS-19 ‘Leases’, a leased asset is shown in the balance sheet of:

Manufacturer
Lessor
Lessee
Financing bank

Detailed SolutionUnder the provisions of AS-19 ‘Leases’, a leased asset is shown in the balance sheet of:

49. In mutually exclusive projects, project which is selected for comparison with others must have

higher net present value
lower net present value
zero net present value
all of above

Detailed SolutionIn mutually exclusive projects, project which is selected for comparison with others must have

50. In order to calculate the proportion of equity financing used by the company, the following should be used:

Authorised Share Capital
Equity Share Capital plus Reserves and Surplus
Equity Share Capital plus Preference Share Capital
Equity Share Capital plus Long-term Debt

Detailed SolutionIn order to calculate the proportion of equity financing used by the company, the following should be used:

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