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

41. Method of stock valuation which is multiple of earning per share, book value and net income is classified as

stock multiple analysis

dividend multiple analysis

market multiple analysis

stock and multiple analysis

Detailed SolutionMethod of stock valuation which is multiple of earning per share, book value and net income is classified as

42. Shares having no face value are known as

no par stock

at par stock

equal stock

debt equity stock

Detailed SolutionShares having no face value are known as

43. Type of financial security in which firms do not borrow money rather lease their assets is classified as

leases

preferred stocks

common stocks

corporate stocks

Detailed SolutionType of financial security in which firms do not borrow money rather lease their assets is classified as

44. A Sound Capital Budgeting technique is based on:

Cash Flows

Accounting Profit

Interest Rate on Borrowings

Last Dividend Paid

Detailed SolutionA Sound Capital Budgeting technique is based on:

45. According to Black Schools model, stocks with call option pays the

dividends

no dividends

current price

past price

Detailed SolutionAccording to Black Schools model, stocks with call option pays the

46. Short term sources are

Bank credit

Public deposit

Commercial papers

All of the above

Detailed SolutionShort term sources are

47. Risk on a stock portfolio which can be reduced by placing it in diversified portfolio is classified as

stock risk

portfolio risk

diversifiable risk

market risk

Detailed SolutionRisk on a stock portfolio which can be reduced by placing it in diversified portfolio is classified as

48. For a constant EBIT, if the debt level is further increased then:

EPS will always increase

EPS may increase

EPS will never increase

None of the above

Detailed SolutionFor a constant EBIT, if the debt level is further increased then:

49. Market risk and diversifiable risk are two components of

stock's risk

portfolio risk

expected return

stock return

Detailed SolutionMarket risk and diversifiable risk are two components of

50. Business owned by a single person in unincorporated way is called

proprietorship

personal business

Private Corporation

personal ownership

Detailed SolutionBusiness owned by a single person in unincorporated way is called

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