Financial management

[amp_mcq option1=”equity multiplier” option2=”graphical multiplier” option3=”turnover multiplier” option4=”stock multiplier” correct=”option1″]

Detailed SolutionTotal assets divided common equity is a formula uses for calculating

[amp_mcq option1=”Book value weights are historical in nature” option2=”This is in conformity with the definition of cost of capital as the investors minimum required rate of return” option3=”Book value weights fluctuate violently” option4=”Market value weights are fairly consistent over a period of time.” correct=”option4″]

Detailed SolutionWhile calculating the weighted average cost of capital, market value weights are preferred because ____________.

[amp_mcq option1=”Sales – Variable cost” option2=”Contribution – Fixed cost” option3=”Sales – Fixed cost” option4=”All the above” correct=”option1″]

Detailed SolutionThe formula of EBIT = ________

[amp_mcq option1=”1950″ option2=”1956″ option3=”1957″ option4=”1965″ correct=”option2″]

Detailed SolutionMumbai stock exchange was recognized on a permanent basis in___________.

[amp_mcq option1=”coefficient of variation” option2=”coefficient of deviation” option3=”coefficient of standard” option4=”coefficient of return” correct=”option1″]

Detailed SolutionStandard deviation is divided by expected rate of return is used to calculate

[amp_mcq option1=”Weighted Average cost of all debts” option2=”Rate of Return expected by Equity Shareholders” option3=”Average IRR of the Projects of the firm” option4=”Minimum Rate of Return that the firm should earn” correct=”option1″]

Detailed SolutionCost of capital may be defined as:

[amp_mcq option1=”market new stock and bond issues for firms” option2=”provide advice to the firms as to market conditions, price, etc” option3=”design securities with desirable properties” option4=”all of the above” correct=”option4″]

Detailed SolutionInvestment bankers perform the following role ___________.

[amp_mcq option1=”coefficient of variation” option2=”coefficient of deviation” option3=”coefficient of standard” option4=”coefficient of return” correct=”option1″]

Detailed SolutionTwo alternative expected returns are compared with help of

[amp_mcq option1=”periodic rate” option2=”perpetuity rate of return” option3=”annual rate” option4=”annuity rate of return” correct=”option1″]

Detailed SolutionRate charged by bank 12.5% on credit loans and 3% semi-annually on instalment loans is considered as

[amp_mcq option1=”Operational Profitability” option2=”Liquidity Position” option3=”Solvency” option4=”Profit” correct=”option1″]

Detailed SolutionNet Profit Ratio Signifies: