Financial management

41. Working Capital Turnover measures the relationship of Working Capital with:

Fixed Assets
Sales
Purchases
Stock

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class="screen-reader-text">Working Capital Turnover measures the relationship of Working Capital with:

42. If retention rate is 0.68 then payout rate will be

1.47
1.68
0.32
0.68

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class="screen-reader-text">If retention rate is 0.68 then payout rate will be

43. Low default-risk security issued by financially secure firms is classified as

U.S treasury bills
commercial paper
certificate of deposit
mutual funds

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as" class="read-more button" href="https://exam.pscnotes.com/mcq/low-default-risk-security-issued-by-financially-secure-firms-is-classified-as/#more-57059">Detailed SolutionLow default-risk security issued by financially secure firms is classified as

44. An amount invested is Rs 1500 and an amount received is Rs 2000 then return would be

Rs 500.00
-Rs 500.00
Rs 3,500.00
-Rs 3,500.00

Detailed SolutionAn amount invested is Rs

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1500 and an amount received is Rs 2000 then return would be

45. An excess of actual price of option over an exercise value of option is classified as

time value options
actual options
estimated options
optional pricing

Detailed SolutionAn

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excess of actual price of option over an exercise value of option is classified as

46. Financial security issued by banks operating outside U.S is classified as

dollar bonds
euro deposits
Eurodollar market deposits
euro bonds

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SolutionFinancial security issued by banks operating outside U.S is classified as

47. Total common equity Rs 996,000,000 and shares outstanding 50,000,000 then book value per share would be

Rs 0.05
Rs 15.00
Rs 19.92
Rs 14.00

Detailed SolutionTotal common

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288 64 288 64S117.2 64 74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z"/> Subscribe on YouTube
equity Rs 996,000,000 and shares outstanding 50,000,000 then book value per share would be

48. Under which of the following approaches cost of equity capital is assumed to be constant with the change in leverage?

Net income approach
Modigliani and Miller approach
Net operating income approach
Traditional approach

Detailed SolutionUnder

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448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z"/> Subscribe on YouTube
which of the following approaches cost of equity capital is assumed to be constant with the change in leverage?

49. Cost of common stock is 15% and bond yield is 10.5% then bond risk premium will be

1.43%
8.50%
25.50%
4.50%

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class="screen-reader-text">Cost of common stock is 15% and bond yield is 10.5% then bond risk premium will be

50. A company sells its stock shares for raising more equity capital is classified as

dealer communication offering
seasoned equity offering
electronic equity offering
electronic order offering

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for raising more equity capital is classified as" class="read-more button" href="https://exam.pscnotes.com/mcq/a-company-sells-its-stock-shares-for-raising-more-equity-capital-is-classified-as/#more-56997">Detailed SolutionA company sells its stock shares for raising more equity capital is classified as

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