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

41. 5Cs of the credit does not include:

Collateral

Character

Conditions

None of the above

Detailed Solution5Cs of the credit does not include:

42. Net investment in operating capital is subtracted from net operating profit after taxes to calculate

relevant inflows

free cash flow

relevant outflows

cash outlay

Detailed SolutionNet investment in operating capital is subtracted from net operating profit after taxes to calculate

43. Advantage of Debt financing is:

Interest is tax-deductible

It reduces WACC

Does not dilute owners control

All of the above

Detailed SolutionAdvantage of Debt financing is:

44. If an investor searches for patterns in security returns by examining various techniques applied to a set of data, this is known as__________.

fundamental analysis

technical analysis

data mining

random-walk theory

Detailed SolutionIf an investor searches for patterns in security returns by examining various techniques applied to a set of data, this is known as__________.

45. High degree of financial leverage means:

High debt proportion

Lower debt proportion

Equal debt and equity

No debt

Detailed SolutionHigh degree of financial leverage means:

46. Return on assets = 5.5%, Total assets Rs 3,000 and common equity Rs 1,050 then return on equity would be

Rs 22,275.00

15.71%

1.93%

1.925 times

Detailed SolutionReturn on assets = 5.5%, Total assets Rs 3,000 and common equity Rs 1,050 then return on equity would be

47. Over the Counter Exchange of India was started after the role model of_________.

NASAQ

JASAQ

NASDAQ& JASDAQ

NSE

Detailed SolutionOver the Counter Exchange of India was started after the role model of_________.

48. Total amount of depreciation charged on long term assets is classified as

accumulated depreciation

depleted depreciation

accumulated appreciation

accumulated appreciation schedule

Detailed SolutionTotal amount of depreciation charged on long term assets is classified as

49. Debt Financing is a cheaper source of finance because of:

Time Value of Money

Rate of Interest

Tax-deductibility of Interest

Dividends not payable to lenders

Detailed SolutionDebt Financing is a cheaper source of finance because of:

50. First step in binomial approach of option pricing is to

define ending price of stock

define beginning price of stock

define range of values

define domain of values

Detailed SolutionFirst step in binomial approach of option pricing is to

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