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

41. An annuity with an extended life is classified as

extended life

perpetuity

deferred perpetuity

due perpetuity

Detailed SolutionAn annuity with an extended life is classified as

42. A right which controls and prevents transfer from current stockholders to other new stockholders is considered as

corporate charter

selling charter

laws

purchase chart

Detailed SolutionA right which controls and prevents transfer from current stockholders to other new stockholders is considered as

43. Coupon rate of convertible bond is

higher

lower

variable

stable

Detailed SolutionCoupon rate of convertible bond is

44. _______ is example of financial intermediaries.

Commercial banks

Investment bank

Insurance companies

All of the above

Detailed Solution_______ is example of financial intermediaries.

45. Concentration Banking helps in:

Reducing Idle Bank Balance

Increasing Collection

Increasing Creditors

Reducing Bank Transactions

Detailed SolutionConcentration Banking helps in:

46. Gordon’s Model of dividend relevance is same as:

No-growth Model of equity valuation

Constant growth Model of equity valuation

Price-Earning Ratio

Inverse of Price Earnings Ratio

Detailed SolutionGordon’s Model of dividend relevance is same as:

47. EBIT is usually the same thing as.

funds provided by operations

earnings before taxes

net income

operating profit

Detailed SolutionEBIT is usually the same thing as.

48. In binomial approach of option pricing model, value of stock is subtracted from call option obligation value to calculate

current value of portfolio

future value of portfolio

put option value

call option value

Detailed SolutionIn binomial approach of option pricing model, value of stock is subtracted from call option obligation value to calculate

49. Firm’s Cost of Capital is the average cost of:

All sources

All borrowings

Share capital

Share Bonds & Debentures

Detailed SolutionFirm’s Cost of Capital is the average cost of:

50. Payment if it is divided with interest rate will be formula of

future value of perpetuity

present value of perpetuity

due perpetuity

deferred perpetuity

Detailed SolutionPayment if it is divided with interest rate will be formula of

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