Financial management Archives - Page 5 of 112 - MCQ and Quiz for Exams

41. Which of the following is studied with the help of financial leverage?

Marketing Risk

Interest Rate Risk

Foreign Exchange Risk

Financing Risk

Detailed SolutionWhich of the following is studied with the help of financial leverage?

42. Cost which has occurred already and not affected by decisions is classified as

sunk cost

occurred cost

weighted cost

mean cost

Detailed SolutionCost which has occurred already and not affected by decisions is classified as

43. Dividend expected on stock during coming year is classified as

current dividend yield

expected dividend yield

yearly dividend

past yield

Detailed SolutionDividend expected on stock during coming year is classified as

44. Stock option is considered more valuable in situation when stock have

price hike in market

market stability

not volatile

highly volatile

Detailed SolutionStock option is considered more valuable in situation when stock have

45. In stock option, a little chance exists for large gain on stock when price of stock

have volatile movement

moves freely

rarely moves

stays same

Detailed SolutionIn stock option, a little chance exists for large gain on stock when price of stock

46. The fixed proportion of working capital should be generally financed from the ____ capital sources.

fixed

variable

semi-variable

borrowed

Detailed SolutionThe fixed proportion of working capital should be generally financed from the ____ capital sources.

47. Cost of Capital refers to:

Flotation Cost

Dividend

Required Rate of Return

None of the above

Detailed SolutionCost of Capital refers to:

48. Mr. A is a daring portfolio manager. He wants to increase the return in his portfolio. He should choose stocks from_______________.

defensive industry

industry at a growth stage

industry in the maturity period

industry with more export potential

Detailed SolutionMr. A is a daring portfolio manager. He wants to increase the return in his portfolio. He should choose stocks from_______________.

49. The term capital structure denotes:

Total of Liability side of Balance Sheet

Equity Funds, Preference Capital and Long-term Debt

Total Shareholders Equity

Types of Capital issued by a Company

Detailed SolutionThe term capital structure denotes:

50. Betas tend to move towards 1.0 with passage of time are classified as

standard betas

varied betas

historical betas

adjusted betas

Detailed SolutionBetas tend to move towards 1.0 with passage of time are classified as

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