Financial management

41. A major difference between real and nominal returns is that_______________.

real returns adjust for inflation and nominal returns do not
real returns use actual cash flows and nominal returns use expected cash flows
real returns adjust for commissions and nominal returns do not
real returns show the highest possible return and nominal returns show the lowest possible return

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nominal returns is that_______________." class="read-more button" href="https://exam.pscnotes.com/mcq/a-major-difference-between-real-and-nominal-returns-is-that_______________/#more-57815">Detailed SolutionA major difference between real and nominal returns is that_______________.

42. Future value of interest if it is calculated once a year is classified as

One time compounding
annual compounding
semi-annual compounding
monthly compounding

Detailed SolutionFuture value of

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89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z"/> Subscribe on YouTube

interest if it is calculated once a year is classified as

43. Yield of interest rate which is below than coupon rate, this yield is classified as

yield to maturity
yield to call
yield to earning
yield to investors

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23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z"/> Subscribe on YouTube
class="read-more button" href="https://exam.pscnotes.com/mcq/yield-of-interest-rate-which-is-below-than-coupon-rate-this-yield-is-classified-as/#more-57782">Detailed SolutionYield of interest rate which is below than coupon rate, this yield is classified as

44. If a firm has no preference share capital, financial break-even level is defined as equal to:

EBIT
Interest liability
Equity dividend
Tax liability

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11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z"/> Subscribe on YouTube button" href="https://exam.pscnotes.com/mcq/if-a-firm-has-no-preference-share-capital-financial-break-even-level-is-defined-as-equal-to/#more-57760">Detailed SolutionIf a firm has no preference share capital, financial break-even level is defined as equal to:

45. The return relative solves the problem of______________.

inflation
negative returns
interest rates
tax differences

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0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z"/> Subscribe on YouTube button" href="https://exam.pscnotes.com/mcq/the-return-relative-solves-the-problem-of______________/#more-57752">Detailed SolutionThe return relative solves the problem of______________.

46. Prices of bonds will be increased if interest rates

equals
lump sum declines
rises
declines

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42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z"/> Subscribe on YouTube href="https://exam.pscnotes.com/mcq/prices-of-bonds-will-be-increased-if-interest-rates/#more-57743">Detailed SolutionPrices of bonds will be increased if interest rates

47. Periodic rate if it is multiplied with per year number of compounding periods is called

extrinsic rate of return
intrinsic rate of return
annual rate of return
nominal annual rate

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is multiplied with per year number of compounding periods is called" class="read-more button" href="https://exam.pscnotes.com/mcq/periodic-rate-if-it-is-multiplied-with-per-year-number-of-compounding-periods-is-called/#more-57719">Detailed SolutionPeriodic rate if it is multiplied with per year number of compounding periods is called

48. In order to calculate EPS, Profit after Tax and Preference Dividend is divided by:

MP of Equity Shares
Number of Equity Shares
Face Value of Equity Shares
None of the above

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by:" class="read-more button" href="https://exam.pscnotes.com/mcq/in-order-to-calculate-eps-profit-after-tax-and-preference-dividend-is-divided-by/#more-57718">Detailed SolutionIn order to calculate EPS, Profit after Tax and Preference Dividend is divided by:

49. The company’s cost of capital is called ________.

Leverage
Hurdle rate
Risk rate
Return rate

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213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z"/> Subscribe on YouTube href="https://exam.pscnotes.com/mcq/the-companys-cost-of-capital-is-called-________/#more-57689">Detailed SolutionThe company’s cost of capital is called ________.

50. Other factors held constant, greater project liquidity is because of

less project return
greater project return
shorter payback period
greater payback period

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liquidity is because of" class="read-more button" href="https://exam.pscnotes.com/mcq/other-factors-held-constant-greater-project-liquidity-is-because-of/#more-57688">Detailed SolutionOther factors held constant, greater project liquidity is because of
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