[amp_mcq option1=”expansion” option2=”salvages” option3=”taxation” option4=”discounts” correct=”option3″]
Detailed SolutionIn cash flow estimation, depreciation shelters company’s income from
Financial management
42. Type of relationship exists between an expected return and risk of portfolio is classified as
[amp_mcq option1=”non-linear” option2=”linear” option3=”fixed and aggregate” option4=”non-fixed and non-aggregate” correct=”option1″]
43. Free cash flow is Rs 15000 and net investment in operating capital is Rs 9000 then net operating profit after taxes will be
[amp_mcq option1=”Rs 24,000.00″ option2=”Rs 6,000.00″ option3=”-Rs 6,000.00″ option4=”-Rs 24,000.00″ correct=”option2″]
44. According to top rating agencies S&P double-B and other lower grade bonds are classified as
[amp_mcq option1=”development bonds” option2=”junk bonds” option3=”compounded bonds” option4=”discounted bonds” correct=”option2″]
45. Which of the following ratios is not affected by the financial structure and the tax rate of a company?
[amp_mcq option1=”Net profit margin” option2=”Earning power” option3=”Earnings per share” option4=”Capitalization rate” correct=”option4″]
46. Financial intermediaries exist because small investors cannot efficiently ________.
[amp_mcq option1=”diversify their portfolios” option2=”gather all relevant information” option3=”assess credit risk of borrowers” option4=”advertise for needed investments E. all of above” correct=”option4″]
Detailed SolutionFinancial intermediaries exist because small investors cannot efficiently ________.
47. The formula for cost of debt is __________.
[amp_mcq option1=”I x ( 1 – t)” option2=”I+p” option3=”I-P” option4=”Ixp” correct=”option1″]
Detailed SolutionThe formula for cost of debt is __________.
48. The relationship between potential unsystematic risk and reward is given by ___________.
[amp_mcq option1=”Excess return to beta ratio” option2=”Excess return to security” option3=”Excess return to security” option4=”Excess return to beta square ratio” correct=”option1″]
49. Financial Leverage measures relationship between:
[amp_mcq option1=”EBIT and PBT” option2=”EBIT and EPS” option3=”Sales and PBT” option4=”Sales and EPS” correct=”option1″]
Detailed SolutionFinancial Leverage measures relationship between:
50. Profit margin = 4.5%, assets turnover = 2.2 times, equity multiplier = 2.7 times then return on equity will be
[amp_mcq option1=”26.73%” option2=”25.73%” option3=”9.40%” option4=”9.00%” correct=”option1″]