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

41. Working Capital Turnover measures the relationship of Working Capital with:

Fixed Assets

Sales

Purchases

Stock

Detailed SolutionWorking Capital Turnover measures the relationship of Working Capital with:

42. If retention rate is 0.68 then payout rate will be

1.47

1.68

0.32

0.68

Detailed SolutionIf retention rate is 0.68 then payout rate will be

43. Low default-risk security issued by financially secure firms is classified as

U.S treasury bills

commercial paper

certificate of deposit

mutual funds

Detailed SolutionLow default-risk security issued by financially secure firms is classified as

44. An amount invested is Rs 1500 and an amount received is Rs 2000 then return would be

Rs 500.00

-Rs 500.00

Rs 3,500.00

-Rs 3,500.00

Detailed SolutionAn amount invested is Rs 1500 and an amount received is Rs 2000 then return would be

45. An excess of actual price of option over an exercise value of option is classified as

time value options

actual options

estimated options

optional pricing

Detailed SolutionAn excess of actual price of option over an exercise value of option is classified as

46. Financial security issued by banks operating outside U.S is classified as

dollar bonds

euro deposits

Eurodollar market deposits

euro bonds

Detailed SolutionFinancial security issued by banks operating outside U.S is classified as

47. Total common equity Rs 996,000,000 and shares outstanding 50,000,000 then book value per share would be

Rs 0.05

Rs 15.00

Rs 19.92

Rs 14.00

Detailed SolutionTotal common equity Rs 996,000,000 and shares outstanding 50,000,000 then book value per share would be

48. Under which of the following approaches cost of equity capital is assumed to be constant with the change in leverage?

Net income approach

Modigliani and Miller approach

Net operating income approach

Traditional approach

Detailed SolutionUnder which of the following approaches cost of equity capital is assumed to be constant with the change in leverage?

49. Cost of common stock is 15% and bond yield is 10.5% then bond risk premium will be

1.43%

8.50%

25.50%

4.50%

Detailed SolutionCost of common stock is 15% and bond yield is 10.5% then bond risk premium will be

50. A company sells its stock shares for raising more equity capital is classified as

dealer communication offering

seasoned equity offering

electronic equity offering

electronic order offering

Detailed SolutionA company sells its stock shares for raising more equity capital is classified as

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