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

41. Risk in which value of investment depends on what happens to foreign exchange rates is classified as

preferred risk

exchange rate risk

country risk

foreign risk

Detailed SolutionRisk in which value of investment depends on what happens to foreign exchange rates is classified as

42. Which of the following is the assumption of the MM model on dividend policy?

The firm is an all-equity firm

The investments of the firm are financed solely by retained earnings

The firm has an infinite life

None of the above

Detailed SolutionWhich of the following is the assumption of the MM model on dividend policy?

43. Cost of new debt or marginal debt is also classified as

historical rate

embedded rate

marginal rate

Both A and B

Detailed SolutionCost of new debt or marginal debt is also classified as

44. The relevant risk for a well-diversified portfolio is____________.

interest rate risk

inflation risk

business risk

market risk

Detailed SolutionThe relevant risk for a well-diversified portfolio is____________.

45. EBIT means _____________.

Operating Income

Operating Profit

Earnings before interest and tax

All of the above

Detailed SolutionEBIT means _____________.

46. If an expected final stock price is Rs 85 and an original investment is Rs 70 then value of expected capital gain would be

Rs 15.00

-Rs 15.00

Rs 155.00

-Rs 155.00

Detailed SolutionIf an expected final stock price is Rs 85 and an original investment is Rs 70 then value of expected capital gain would be

47. In time value of money, periodic rate is

not shown on timeline

shown on timeline

multiplied on timeline

divided on timeline

Detailed SolutionIn time value of money, periodic rate is

48. Which of the following is related to Receivables Management?

Cash Budget

Economic Order Quantity

Ageing Schedule

All of the above

Detailed SolutionWhich of the following is related to Receivables Management?

49. Intangible assets such as copyrights, trademarks and patents are applicable for

depreciation

amortization

stock amortization

perishable assets

Detailed SolutionIntangible assets such as copyrights, trademarks and patents are applicable for

50. A short-term lease which is often cancellable is known as:

Finance Lease

Net Lease

Operating Lease

Leverage Lease

Detailed SolutionA short-term lease which is often cancellable is known as:

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