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

41. Which of the following is true for Net Income Approach?

Higher equity is better

Higher debt is better

Debt ratio is irrelevant

None of the above

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

42. An unlimited liability is classified as liabilities of the

limited partners

general partners

venture partners

corporate partners

Detailed SolutionAn unlimited liability is classified as liabilities of the

43. Price per share is Rs 25 and cash flow per share is Rs 6 then price to cash flow ratio would be

0.24 times

4.16 times

4.16%

24.00%

Detailed SolutionPrice per share is Rs 25 and cash flow per share is Rs 6 then price to cash flow ratio would be

44. Relevant information about stock market price if it is given, then this price is called

market price

intrinsic price

extrinsic price

unstable price

Detailed SolutionRelevant information about stock market price if it is given, then this price is called

45. Earnings that are not paid as dividends to stockholders and have cumulative amount are classified as

non-paid earnings

common earnings

retained earnings

preferred earnings

Detailed SolutionEarnings that are not paid as dividends to stockholders and have cumulative amount are classified as

46. In capital budgeting, a negative net present value results in

zero economic value added

percent economic value added

negative economic value added

positive economic value added

Detailed SolutionIn capital budgeting, a negative net present value results in

47. Value of free cash flows Rs55000, operating cost and taxes Rs30000, then value of sales revenues (in Rs) will be

Rs 25,000.00

Rs 85,000.00

Rs 35,000.00

Rs 45,000.00

Detailed SolutionValue of free cash flows Rs55000, operating cost and taxes Rs30000, then value of sales revenues (in Rs) will be

48. Investment bankers operate in the______________.

primary market

secondary market

A and B both

None of above

Detailed SolutionInvestment bankers operate in the______________.

49. In case the firm is all-equity financed, WACC would be equal to:

Cost of Debt

Cost of Equity

Neither A nor B

Both A and B

Detailed SolutionIn case the firm is all-equity financed, WACC would be equal to:

50. Arbitrage is the level processing technique introduced in _________.

Net income approach

MM approach

Operating approach

Traditional approach

Detailed SolutionArbitrage is the level processing technique introduced in _________.

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