MCQGeeks
0 : 0 : 1
CBSE
JEE
NTSE
NEET
English
UK Quiz
Quiz
Driving Test
Practice
Games
Quiz
Commerce
Financial Management
Quiz 12
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
Q.1
A type of beta which incorporates about company such as changes in capital structure is classified as
industry beta
market beta
subtracted beta
fundamental beta
Q.2
Dividend per share is Rs 18 and sell it for Rs 122 and floatation cost is Rs 4 then component cost of preferred stock will be
15.25%
0.1525 times
15.25
0.15%
Q.3
Method uses for an estimation of cost of equity is classified as
market cash flow
future cash flow method
discounted cash flow method
present cash flow method
Q.4
Cost of common stock is 14% and bond risk premium is 9% then bond yield will be
1.56%
5.00%
23.00%
64.28%
Q.5
In weighted average cost of capital, a company can affect its capital cost through
policy of capital structure
policy of dividends
policy of investment
all of above
Q.6
Dividends paid to common shareholders and divided by common shares outstanding are equals to
earning per share
dividends per share
book value of share
market value of shares
Q.7
If future return on common stock is 14% and rate on T-bonds is 5% then current market risk premium will be
19.00%
9.00%
Rs 9
Rs 19
Q.8
rate which is divided by compounding periods to calculate periodic rate must be
annuity return
deferred annuity return
nominal rate
semi-annual discount rate
Q.9
In calculation of time, value of money, ''N ''represents
number of payment periods
number of investment
number of instalments
number of premium received
Q.10
Paid dividends to common stockholders Rs 67,600,000 and common shares outstanding 55,000,000 then dividend per share will be
Rs 1.23
Rs 0.81
Rs 2.12
Rs 2.78
Q.11
Procedure of finding present values in time value of money is classified as
compounding
discounting
money value
stock value
Q.12
Periodic rate if it is multiplied with per year number of compounding periods is called
extrinsic rate of return
intrinsic rate of return
annual rate of return
nominal annual rate
Q.13
Net income and depreciation is Rs 313,650,000 and common shares outstanding are 55,000,000 then cash flow per share would be
Rs 5.70
Rs 6.70
Rs 7.70
Rs 8.70
Q.14
An attempt to make correction by adjusting historical beta to make it closer to an average beta is classified as
adjusted stock
adjusted beta
adjusted coefficient
adjusted risk
Q.15
Securities future value is Rs 1,000,000 and present value of securities is Rs 500,000 with an interest rate of 4.5%, 'N' will be
16.7473 years
0.0304 months
15.7473 years
0.7575 years
Q.16
Prices of bonds will be increased if interest rates
equals
lump sum declines
rises
declines
Q.17
Payment of security if it is made at end of each period such as beginning of year is classified as
annuity due
payment fixed series
ordinary annuity
deferred annuity
Q.18
Earnings that are not paid as dividends to stockholders and have cumulative amount are classified as
non-paid earnings
common earnings
retained earnings
preferred earnings
Q.19
In time value of money, periodic rate is
not shown on timeline
shown on timeline
multiplied on timeline
divided on timeline
Q.20
Future value of interest if it is calculated two times a year can be a classified as
semi-annual discounting
annual discounting
annual compounding
semi-annual compounding
Q.21
Payment if it is divided with interest rate will be formula of
future value of perpetuity
present value of perpetuity
due perpetuity
deferred perpetuity
Q.22
An earning before interest, taxes, depreciation and amortization are calculated by
subtracting operating cost from net sales
subtracting net sales from operating costs
adding operating cost and net sales
adding interest and taxes
Q.23
Until word of preferred is used, an equity in balance sheet is treated as
common equity
preferred equity
due equity
common perpetuity
Q.24
Value of payment is Rs 25 and an interest rate is 2%, then present value will be
Rs 12.54
Rs 12,500.00
Rs 12,504.00
Rs 8,400.00
Q.25
Collection of net income, amortization and depreciation is divided by common shares outstanding to calculate
cash flow of financing activities
cash flow per share
cash flow of investment
cash flow of operations
Q.26
In a statement of cash flows, a company investing in short-term financial investments and in fixed assets results in
increased cash
decreased cash
increased liabilities
increased equity
Q.27
Financial securities that can be converted into cash at closing to their book value price are classified as
inventories
short-term investments
cash equivalents
long-term investments
Q.28
If payment of security is paid as Rs 100 at end of year for three years, it is an example of
fixed payment investment
lump sum amount
fixed interval investment
annuity
Q.29
Claim against assets are represented by
saved earning
retained earnings
maintained earnings
saving account earning
Q.30
Rate charged by bank 12.5% on credit loans and 3% semi-annually on instalment loans is considered as
periodic rate
perpetuity rate of return
annual rate
annuity rate of return
Q.31
Future value of annuity FVA(ordinary) is, if deposited value is Rs 100 and earn 5% every year of total three years will be
Rs 315.25
Rs 331.01
Rs 99.49
Rs 318.25
Q.32
Discounted cash flow analysis is also classified as
time value of stock
time value of money
time value of bonds
time value of treasury bonds
Q.33
Prices of bonds will be decreased if an interest rates
rises
declines
equals
none of above
Q.34
Right side of balance sheet states the
appreciated earnings
liabilities
assets
stocks earnings
Q.35
Wages and salaries of employees which company owns in this accounts are called
accrued expenses
accruals accounts
Both A and B
zero liabilities
Q.36
Net worth is also called
asset net of liabilities
liabilities net of assets
earnings net on assets
liabilities net of earnings
Q.37
An annual rate of 16% if quoted by credit card issuer usually a bank is classified as
loan rate of return
local rate of return
annual percentage rate
annual rate of return
Q.38
Total common equity divided by common shares outstanding which is used to calculate
book value of share
market value of shares
earning per share
dividends per share
Q.39
Tracking stock of company is also classified as
target stock
dividend stock
firm part stock
tied stock
Q.40
Average rate of return which is required by all investors of company is classified as
extrinsic cost of capital
weighted average cost of capital
mean cost of capital
standard cost of cash
Q.41
An actual rate of return is subtracted from expected growth rate then it is divided from dividend stockholders expects use for calculating
dividend growth model
actual growth model
constant growth model
variable growth model
Q.42
Value of stock is Rs 900 and required rate of return is 30% then preferred dividend will be
Rs 270.00
Rs 27,000.00
Rs 90.00
Rs 90.00
Q.43
A situation in which an outside group solicit proxies to take control of business is classified as
outside group
solicit process
proxy fight
controlled management
Q.44
A stock which is issued to meet specific needs of company is considered as
classified stock
specific stock
needed stock
meeting stock
Q.45
Complex statistical and mathematical theory is an approach, which is classified as
arbitrage pricing theory
arbitrage risk theory
arbitrage dividend theory
arbitrage market theory
Q.46
First step in determining an efficient portfolio is to consider
set of attainable portfolios
set of unattainable portfolios
set of attributable portfolios
set of attributable portfolios
Q.47
Tendency of people to blame failure on bad luck but given tribute of success to themselves is classified as
self-attribution bias
self-success bias
self-failure bias
self-condition bias
Q.48
Stock portfolio with highest book to market ratios is considered as
H portfolio
L portfolio
S portfolio
B to M portfolio
Q.49
If book value is greater than market value comparison with investors for future stock are considered as
pessimistic
optimistic
experienced
inexperienced
Q.50
For any or lower degree of risk, highest or any expected return are concepts use in
risky portfolios
behavior portfolios
inefficient portfolios
efficient portfolios
0 h : 0 m : 1 s
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
Report Question
×
What's an issue?
Question is wrong
Answer is wrong
Other Reason
Want to elaborate a bit more? (optional)
Support mcqgeeks.com by disabling your adblocker.
×
Please disable the adBlock and continue.
Thank you.
Reload page