Financial management

[amp_mcq option1=”annual percentage rate” option2=”annual rate of return” option3=”loan rate of return” option4=”local rate of return” correct=”option1″]

Detailed SolutionNominal rate which is quoted to consumers on loans is considered as

[amp_mcq option1=”outcry auction system” option2=”outcry system” option3=”face to face communication” option4=”money communication” correct=”option1″]

Detailed SolutionTrading place where traders meet one another to communicate is classified as

[amp_mcq option1=”depends on the value of the related primitive security” option2=”can only cause increased risk” option3=”is unrelated to the value of the related primitive security” option4=”is worthless today” correct=”option1″]

Detailed SolutionThe value of a derivative security _______.

[amp_mcq option1=”In the initial preposition, MM Model argues that value is independent of the financing mix” option2=”Total value of levered and unlevered firms is otherwise arbitrage will take place” option3=”Total value incorporates borrowings by firm but excludes personal borrowing” option4=”Total value does not change because underlying does not change with financing mix” correct=”option4″]

Detailed SolutionWhich of the following is incorrect for value of the firm?

[amp_mcq option1=”PV of hurdle rate” option2=”FV of hurdle rate” option3=”PV of terminal value” option4=”FV of terminal value” correct=”option1″]

Detailed SolutionA modified internal rate of return is considered as present value of costs and is equal to

[amp_mcq option1=”more risky” option2=”less risky” option3=”pessimistic” option4=”optimistic” correct=”option1″]

Detailed SolutionStocks which has high book for market ratio are considered as

[amp_mcq option1=”long-term markets” option2=”secondary markets” option3=”money markets” option4=”capital markets” correct=”option2″]

Detailed SolutionPhysical location exchange or telephone networks are types of

[amp_mcq option1=”preferred equity” option2=”due equity” option3=”common perpetuity” option4=”common equity” correct=”option4″]

Detailed SolutionIn balance sheet, sum of retained earnings and common stock are considered as

[amp_mcq option1=”be accepted” option2=”not be accepted” option3=”have capital acceptance” option4=”have return rate acceptance” correct=”option1″]

Detailed SolutionIf two independent projects having hurdle rate then both projects should

[amp_mcq option1=”hurdle number” option2=”relative number” option3=”negative numbers” option4=”positive numbers” correct=”option4″]

Detailed SolutionCash inflows are revenues of project and are represented by