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

41. A formula such as an original investment plus an expected capital gain is used to calculate

final stock

expected stock

expected final stock price

final stock price

Detailed SolutionA formula such as an original investment plus an expected capital gain is used to calculate

42. The amount of the temporary working capital __________.

keeps on fluctuating from time to time

remains constant for all times

financed through long term services

none of the above.

Detailed SolutionThe amount of the temporary working capital __________.

43. Document in a corporation which consists of amount of stock, name and addresses of directors is classified as

liability plan

stock planning

corporation paperwork

charter

Detailed SolutionDocument in a corporation which consists of amount of stock, name and addresses of directors is classified as

44. In weighted average cost of capital, rising in interest rate leads to

increase in cost of debt

increase capital structure

decrease in cost of debt

decrease capital structure

Detailed SolutionIn weighted average cost of capital, rising in interest rate leads to

45. Coefficient of beta is used to measure stock volatility

coefficient of market

relative to market

irrelative to market

same with market

Detailed SolutionCoefficient of beta is used to measure stock volatility

46. The rate of return on investment ____ with the shortage of working capital.

falls

going

constant

change

Detailed SolutionThe rate of return on investment ____ with the shortage of working capital.

47. An investor who writes stock call options in his own portfolio is classified as

due option

covered option

undue option

uncovered option

Detailed SolutionAn investor who writes stock call options in his own portfolio is classified as

48. Under the provisions of AS-19 ‘Leases’, a leased asset is shown in the balance sheet of:

Manufacturer

Lessor

Lessee

Financing bank

Detailed SolutionUnder the provisions of AS-19 ‘Leases’, a leased asset is shown in the balance sheet of:

49. In mutually exclusive projects, project which is selected for comparison with others must have

higher net present value

lower net present value

zero net present value

all of above

Detailed SolutionIn mutually exclusive projects, project which is selected for comparison with others must have

50. In order to calculate the proportion of equity financing used by the company, the following should be used:

Authorised Share Capital

Equity Share Capital plus Reserves and Surplus

Equity Share Capital plus Preference Share Capital

Equity Share Capital plus Long-term Debt

Detailed SolutionIn order to calculate the proportion of equity financing used by the company, the following should be used:

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