[amp_mcq option1=”present value consent” option2=”mutually exclusive” option3=”mutual project” option4=”mutual consent” correct=”option2″]
Financial management
42. In Corporation characteristics, losses are subject to funds invested actually is considered as
[amp_mcq option1=”limited liability” option2=”unlimited liability” option3=”general liability” option4=”controlled ownership liability” correct=”option1″]
43. If ke = r, then under Walter’s Model, which of the following is irrelevant?
[amp_mcq option1=”Earnings per share” option2=”Dividend per share” option3=”DP Ratio” option4=”None of the above” correct=”option1″]
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.
[amp_mcq option1=”Variability” option2=”Probability” option3=”Certainty” option4=”None of the above” correct=”option2″]
45. Relationship between total risk of stock, diversifiable risk and market risk is classified as
[amp_mcq option1=”total risk” option2=”standard deviation” option3=”standard alpha” option4=”treynor alpha” correct=”option1″]
46. Standard deviation is 18% and expected return is 15.5% then coefficient of variation would be
[amp_mcq option1=”0.86%” option2=”1.16%” option3=”2.50%” option4=”-2.50%” correct=”option2″]
47. Chance of happening any unfavourable event in near future is classified as
[amp_mcq option1=”chance” option2=”event happening” option3=”probability” option4=”risk” correct=”option4″]
Detailed SolutionChance of happening any unfavourable event in near future is classified as
48. Retained earnings are ?
[amp_mcq option1=”an indication of a company’s liquidity” option2=”the same as cash in the bank” option3=”not important when determining dividends” option4=”the cumulative earnings of the company after dividends.” correct=”option4″]
49. An effect of interest rate risk and investment risk on a bond’s yield is classified as
[amp_mcq option1=”reinvestment premium” option2=”investment risk premium” option3=”maturity risk premium” option4=”defaulter’s premium” correct=”option1″]
50. In which of the following sections of a balance sheet are “Inventories” listed?
[amp_mcq option1=”Current assets” option2=”Property, plant and equipment, at cost” option3=”Current liabilities” option4=”Shareholders’ Equity” correct=”option1″]
Detailed SolutionIn which of the following sections of a balance sheet are “Inventories” listed?