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

41. Situation in which one project is accepted while rejecting another project in comparison is classified as

present value consent

mutually exclusive

mutual project

mutual consent

Detailed SolutionSituation in which one project is accepted while rejecting another project in comparison is classified as

42. In Corporation characteristics, losses are subject to funds invested actually is considered as

limited liability

unlimited liability

general liability

controlled ownership liability

Detailed SolutionIn Corporation characteristics, losses are subject to funds invested actually is considered as

43. If ke = r, then under Walter’s Model, which of the following is irrelevant?

Earnings per share

Dividend per share

DP Ratio

None of the above

Detailed SolutionIf ke = r, then under Walter’s Model, which of the following is irrelevant?

44. Risk in Capital budgeting implies that the decision-maker knows . . . . . . . . of the cash flows.

Variability

Probability

Certainty

None of the above

Detailed SolutionRisk in Capital budgeting implies that the decision-maker knows . . . . . . . . of the cash flows.

45. Relationship between total risk of stock, diversifiable risk and market risk is classified as

total risk

standard deviation

standard alpha

treynor alpha

Detailed SolutionRelationship between total risk of stock, diversifiable risk and market risk is classified as

46. Standard deviation is 18% and expected return is 15.5% then coefficient of variation would be

0.86%

1.16%

2.50%

-2.50%

Detailed SolutionStandard deviation is 18% and expected return is 15.5% then coefficient of variation would be

47. Chance of happening any unfavourable event in near future is classified as

chance

event happening

probability

risk

Detailed SolutionChance of happening any unfavourable event in near future is classified as

48. Retained earnings are ?

an indication of a company's liquidity

the same as cash in the bank

not important when determining dividends

the cumulative earnings of the company after dividends.

Detailed SolutionRetained earnings are ?

49. An effect of interest rate risk and investment risk on a bond’s yield is classified as

reinvestment premium

investment risk premium

maturity risk premium

defaulter's premium

Detailed SolutionAn effect of interest rate risk and investment risk on a bond’s yield is classified as

50. In which of the following sections of a balance sheet are “Inventories” listed?

Current assets

Property, plant and equipment, at cost

Current liabilities

Shareholders' Equity

Detailed SolutionIn which of the following sections of a balance sheet are “Inventories” listed?

Page 1 Page 2 Page 3 Page 4 Page 5

Test 1 Test 2 Test 3 Test 4 Test 5 Test 6 Test 7 Test 8 Test 9 Test 10 Test 11 Test 12 Test 13 Test 14 Test 15 Test 16 Test 17 Test 18 Test 19 Test 20 Test 21 Test 22 Test 23

Exit mobile version