Financial management

41. 5Cs of the credit does not include:

Collateral
Character
Conditions
None of the above

Detailed Solution5Cs of the credit does not include:

42. Net investment in operating capital is subtracted from net operating profit after taxes to calculate

relevant inflows
free cash flow
relevant outflows
cash outlay

Detailed SolutionNet investment in operating capital is subtracted from net operating profit after taxes to calculate

43. Advantage of Debt financing is:

Interest is tax-deductible
It reduces WACC
Does not dilute owners control
All of the above

Detailed SolutionAdvantage of Debt financing is:

44. If an investor searches for patterns in security returns by examining various techniques applied to a set of data, this is known as__________.

fundamental analysis
technical analysis
data mining
random-walk theory

Detailed SolutionIf an investor searches for patterns in security returns by examining various techniques applied to a set of data, this is known as__________.

45. High degree of financial leverage means:

High debt proportion
Lower debt proportion
Equal debt and equity
No debt

Detailed SolutionHigh degree of financial leverage means:

46. Return on assets = 5.5%, Total assets Rs 3,000 and common equity Rs 1,050 then return on equity would be

Rs 22,275.00
15.71%
1.93%
1.925 times

Detailed SolutionReturn on assets = 5.5%, Total assets Rs 3,000 and common equity Rs 1,050 then return on equity would be

47. Over the Counter Exchange of India was started after the role model of_________.

NASAQ
JASAQ
NASDAQ& JASDAQ
NSE

Detailed SolutionOver the Counter Exchange of India was started after the role model of_________.

48. Total amount of depreciation charged on long term assets is classified as

accumulated depreciation
depleted depreciation
accumulated appreciation
accumulated appreciation schedule

Detailed SolutionTotal amount of depreciation charged on long term assets is classified as

49. Debt Financing is a cheaper source of finance because of:

Time Value of Money
Rate of Interest
Tax-deductibility of Interest
Dividends not payable to lenders

Detailed SolutionDebt Financing is a cheaper source of finance because of:

50. First step in binomial approach of option pricing is to

define ending price of stock
define beginning price of stock
define range of values
define domain of values

Detailed SolutionFirst step in binomial approach of option pricing is to

Page 1Page 2Page 3Page 4Page 5
Test 1Test 2Test 3Test 4Test 5Test 6Test 7Test 8Test 9Test 10Test 11Test 12Test 13Test 14Test 15Test 16Test 17Test 18Test 19Test 20Test 21Test 22Test 23