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

41. Formula written as 0.67(Historical Beta) + 0.35(1.0) is used to calculate

historical betas

adjusted betas

standard betas

varied betas

Detailed SolutionFormula written as 0.67(Historical Beta) + 0.35(1.0) is used to calculate

42. Present value of dividends which is expected to be provided in future is classified as an

intrinsic value of stock

extrinsic value of stock

intrinsic bonds

extrinsic bonds

Detailed SolutionPresent value of dividends which is expected to be provided in future is classified as an

43. For investors, steeper slope of indifference curve shows more

risk averse investor

risk taker investor

in differential investor

ineffective investment

Detailed SolutionFor investors, steeper slope of indifference curve shows more

44. According to capital asset pricing model assumptions, variances, expected returns and covariance of all assets are

identical

not identical

fixed

variable

Detailed SolutionAccording to capital asset pricing model assumptions, variances, expected returns and covariance of all assets are

45. Which of the following would not be considered as capital market security?

A corporate bond

A common stock

A 6-month Treasury bill

A mutual fund share

Detailed SolutionWhich of the following would not be considered as capital market security?

46. Which of the following is true of Net Income Approach?

VF = VE + VD

VE = VF + VD

VD = VF + VE

VF = VE - VD

Detailed SolutionWhich of the following is true of Net Income Approach?

47. Other factors held constant, but lesser project liquidity is because of

shorter payback period

greater payback period

less project return

greater project return

Detailed SolutionOther factors held constant, but lesser project liquidity is because of

48. Effective cost of debentures is _________ as compared to shares.

higher

lower

equal

medium

Detailed SolutionEffective cost of debentures is _________ as compared to shares.

49. A company may raise capital from the primary market through _____________.

Public issue

Rights issue

Bought out deals

All of the above

Detailed SolutionA company may raise capital from the primary market through _____________.

50. In estimating value of cash flows, compounded future value is classified as its

terminal value

existed value

quit value

relative value

Detailed SolutionIn estimating value of cash flows, compounded future value is classified as its

Page 1 Page 2 Page 3 Page 4 Page 5

Test 1 Test 2 Test 3 Test 4 Test 5 Test 6 Test 7 Test 8 Test 9 Test 10 Test 11 Test 12 Test 13 Test 14 Test 15 Test 16 Test 17 Test 18 Test 19 Test 20 Test 21 Test 22 Test 23

Exit mobile version