Financial management

[amp_mcq option1=”Profitability varies inversely with risk” option2=”Liquidity moves together with risk” option3=”Profitability moves together with risk” option4=”Profitability moves together with liquidity” correct=”option1″]

Detailed SolutionWhich of the following is a basic principle of finance as it relates to the management of working capital?

[amp_mcq option1=”provision” option2=”guarantee” option3=”warrants” option4=”convertibles” correct=”option3″]

Detailed SolutionType of options that permit bond holder to buy stocks at stated price are classified as

[amp_mcq option1=”Rs 45.00″ option2=”-Rs 45.00″ option3=”Rs 95.00″ option4=”-Rs 95.00″ correct=”option3″]

Detailed SolutionAn expected final stock price is Rs 70 and an expected capital gain is Rs 25 then an original investment would be

[amp_mcq option1=”future funds” option2=”hedge funds” option3=”retirement funds” option4=”pension funds” correct=”option2″]

Detailed SolutionCollection of money from investors and spending money in other investment activities is classified as

[amp_mcq option1=”earnings per share” option2=”dividend yield” option3=”book value” option4=”P/E ratio” correct=”option4″]

Detailed SolutionIf an investor states that Intel is overvalued at 65 times, he is referring to___________.

[amp_mcq option1=”expected growth rate” option2=”annual growth rate” option3=”past growth rate” option4=”unexpected growth rate” correct=”option1″]

Detailed SolutionGrowth rate which is predicted by marginal investors for dividends is classified as

[amp_mcq option1=”money market” option2=”capital market” option3=”government market” option4=”regulated market” correct=”option1″]

Detailed SolutionTreasury bills are traded in the __________.

[amp_mcq option1=”greater than two” option2=”equal to” option3=”less than one” option4=”greater than one” correct=”option4″]

Detailed SolutionIf net present value is positive then profitability index will be

[amp_mcq option1=”intrinsic preference” option2=”perpetuities” option3=”extrinsic preference” option4=”weak preference” correct=”option1″]

Detailed SolutionPreferred stocks are also classified as

[amp_mcq option1=”is selling at a discount” option2=”is selling at a premium” option3=”is an index fund” option4=”is an exchange traded fund” correct=”option1″]

Detailed SolutionIf NAV > market price of a fund, then the fund ________