Financial management

813. This type of risk is avoidable through proper diversification.

portfolio risk
systematic risk
unsystematic risk
total risk

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class="read-more button" href="https://exam.pscnotes.com/mcq/this-type-of-risk-is-avoidable-through-proper-diversification/#more-47564">Detailed SolutionThis type of risk is avoidable through proper diversification.

814. If payout ratio is 0.45 then retention ratio will be

0.55
1.45
1.82
0.45

Detailed

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SolutionIf payout ratio is 0.45 then retention ratio will be

815. Operating leverage works when:

Sales increases
Sales decreases
Both A and B
None of A and B

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works when:" class="read-more button" href="https://exam.pscnotes.com/mcq/operating-leverage-works-when/#more-47541">Detailed SolutionOperating leverage works when:

816. The Degree of Financial Leverage (DFL)

Measures financial risk of the firm
Is zero at financial break-even point
Increases as EBIT increases
Both a and b

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class="youtube-subscribe-button"> Subscribe on YouTube Financial Leverage (DFL)" class="read-more button" href="https://exam.pscnotes.com/mcq/the-degree-of-financial-leverage-dfl/#more-47539">Detailed SolutionThe Degree of Financial Leverage (DFL)

817. Gross Profit Ratio for a firm remains same but the Net Profit Ratio is decreasing. The reason for such behaviour could be:

Increase in Costs of Goods Sold
If Increase in Expense
Increase in Dividend
Decrease in Sales

Detailed SolutionGross Profit Ratio for a

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firm remains
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same but the Net Profit Ratio is decreasing. The reason for such behaviour could be:

818. In arbitrage pricing theory, higher required rate of return is usually paid on stock

higher market risk
higher dividend
lower dividend
lower market risk

Detailed SolutionIn arbitrage pricing

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theory, higher required rate of return is usually paid on stock

819. If common shares outstanding are 50,000,000 and book value per share is Rs 19.92 then total common equity will be

Rs 996,000,000.00
Rs 995,000,000.00
Rs 992,000,000.00
Rs 991,000,000.00

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href="https://www.youtube.com/channel/UCNHT8lW-JmLC68rjBfZhdkg?sub_confirmation=1" target="_blank" class="youtube-subscribe-button"> Subscribe on YouTube class="screen-reader-text">If common shares outstanding are 50,000,000 and book value per share is Rs 19.92 then total common equity will be

820. Inventory is generally valued as lower of:

Market Price and Replacement Cost
Cost and Net Realizable Value
Cost and Sales Value
Sales Value and Profit

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class="read-more button" href="https://exam.pscnotes.com/mcq/inventory-is-generally-valued-as-lower-of/#more-47475">Detailed SolutionInventory is generally valued as lower of:

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