Financial management Archives - Page 7 of 112 - MCQ and Quiz for Exams

61. Type of stock in which dividends are tied to any particular part of a firm is classified as

dividend stock

firm part stock

tied stock

tracking stock

Detailed SolutionType of stock in which dividends are tied to any particular part of a firm is classified as

62. Price at which European and American options can be exercised is classified as

exercise price

strike price

horizon price

Both A and B

Detailed SolutionPrice at which European and American options can be exercised is classified as

63. Number of shares outstanding if it is divided by net income for using to calculate

earning per share

dividends per share

book value of share

market value of shares

Detailed SolutionNumber of shares outstanding if it is divided by net income for using to calculate

64. A fixed rate of _________ is payable on debentures

dividend

Commission

Interest

Brokerage

Detailed SolutionA fixed rate of _________ is payable on debentures

65. Project which is started by firm for increasing sales is classified as

new expansion project

old expanded project

firm borrowing project

product line selection

Detailed SolutionProject which is started by firm for increasing sales is classified as

66. The arbitrary process is the behavioral foundation for the ____________.

MM approach

XX approach

Gorder approach

Miller approach

Detailed SolutionThe arbitrary process is the behavioral foundation for the ____________.

67. Which of the following is not a relevant cost in Capital Budgeting?

Sunk Cost

Opportunity Cost

Allocated Overheads

Both A and C above

Detailed SolutionWhich of the following is not a relevant cost in Capital Budgeting?

68. A stock which is hybrid and works as a cross between debt and common stock is considered as

hybrid stock

common liabilities

debt liabilities

preferred stock

Detailed SolutionA stock which is hybrid and works as a cross between debt and common stock is considered as

69. In calculation of betas, an adjusted betas are highly dependent on historical

unadjusted betas

adjusted historical betas

fundamental historical betas

fundamental varied betas

Detailed SolutionIn calculation of betas, an adjusted betas are highly dependent on historical

70. Negative minimum risk portfolio of any security shows that market security sold

less than original price

greater than original price

equal to original price

equal to sum of stocks

Detailed SolutionNegative minimum risk portfolio of any security shows that market security sold

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