[amp_mcq option1=”Collateral” option2=”Character” option3=”Conditions” option4=”None of the above” correct=”option4″]
Financial management
42. Net investment in operating capital is subtracted from net operating profit after taxes to calculate
[amp_mcq option1=”relevant inflows” option2=”free cash flow” option3=”relevant outflows” option4=”cash outlay” correct=”option2″]
43. Advantage of Debt financing is:
[amp_mcq option1=”Interest is tax-deductible” option2=”It reduces WACC” option3=”Does not dilute owners control” option4=”All of the above” correct=”option4″]
44. If an investor searches for patterns in security returns by examining various techniques applied to a set of data, this is known as__________.
[amp_mcq option1=”fundamental analysis” option2=”technical analysis” option3=”data mining” option4=”random-walk theory” correct=”option2″]
45. High degree of financial leverage means:
[amp_mcq option1=”High debt proportion” option2=”Lower debt proportion” option3=”Equal debt and equity” option4=”No debt” correct=”option1″]
46. Return on assets = 5.5%, Total assets Rs 3,000 and common equity Rs 1,050 then return on equity would be
[amp_mcq option1=”Rs 22,275.00″ option2=”15.71%” option3=”1.93%” option4=”1.925 times” correct=”option2″]
47. Over the Counter Exchange of India was started after the role model of_________.
[amp_mcq option1=”NASAQ” option2=”JASAQ” option3=”NASDAQ& JASDAQ” option4=”NSE” correct=”option1″]
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
[amp_mcq option1=”accumulated depreciation” option2=”depleted depreciation” option3=”accumulated appreciation” option4=”accumulated appreciation schedule” correct=”option1″]
Detailed SolutionTotal amount of depreciation charged on long term assets is classified as
49. Debt Financing is a cheaper source of finance because of:
[amp_mcq option1=”Time Value of Money” option2=”Rate of Interest” option3=”Tax-deductibility of Interest” option4=”Dividends not payable to lenders” correct=”option3″]
Detailed SolutionDebt Financing is a cheaper source of finance because of:
50. First step in binomial approach of option pricing is to
[amp_mcq option1=”define ending price of stock” option2=”define beginning price of stock” option3=”define range of values” option4=”define domain of values” correct=”option2″]
Detailed SolutionFirst step in binomial approach of option pricing is to