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MCQOPTIONS
This section includes 2436 Mcqs, each offering curated multiple-choice questions to sharpen your Commerce knowledge and support exam preparation. Choose a topic below to get started.
| 751. |
Future value of annuity FVA(ordinary) is, if deposited value is Rs 100 and earn 5% every year of total three years will be |
| A. | s 315.25 |
| B. | s 331.01 |
| C. | s 99.49 |
| D. | s 318.25 |
| Answer» B. s 331.01 | |
| 752. |
In a statement of cash flows, a company investing in short-term financial investments and in fixed assets results in |
| A. | ncreased cash |
| B. | ecreased cash |
| C. | ncreased liabilities |
| D. | ncreased equity |
| Answer» C. ncreased liabilities | |
| 753. |
An annual rate of 16% if quoted by credit card issuer usually a bank is classified as |
| A. | oan rate of return |
| B. | ocal rate of return |
| C. | nnual percentage rate |
| D. | nnual rate of return |
| Answer» D. nnual rate of return | |
| 754. |
Net worth is also called |
| A. | sset net of liabilities |
| B. | iabilities net of assets |
| C. | arnings net on assets |
| D. | iabilities net of earnings |
| Answer» B. iabilities net of assets | |
| 755. |
Payment of security if it is made at end of each period such as beginning of year is classified as |
| A. | nnuity due |
| B. | ayment fixed series |
| C. | rdinary annuity |
| D. | eferred annuity |
| Answer» B. ayment fixed series | |
| 756. |
In weighted average cost of capital, rising in interest rate leads to |
| A. | ncrease in cost of debt |
| B. | ncrease capital structure |
| C. | ecrease in cost of debt |
| D. | ecrease capital structure |
| Answer» B. ncrease capital structure | |
| 757. |
In retention growth model, percent of net income firms usually pay out as shareholders dividends is classified as |
| A. | ayout ratio |
| B. | ayback ratio |
| C. | rowth retention ratio |
| D. | resent value of ratio |
| Answer» B. ayback ratio | |
| 758. |
Stock selling price is Rs 65, expected dividend is Rs 20 and cost of common stock is 42% then expected growth rate will be |
| A. | .1123 times |
| B. | 1.23% |
| C. | 1.23 times |
| D. | s 11.23 |
| Answer» C. 1.23 times | |
| 759. |
Preferred dividend is divided by preferred stock price multiply by (1-floatation cost) is used to calculate |
| A. | ransaction cost of preferred stock |
| B. | inancing of preferred stock |
| C. | eighted cost of capital |
| D. | omponent cost of preferred stock |
| Answer» E. | |
| 760. |
Stock selling price is Rs 35, expected dividend is Rs 5 and expected growth rate is 8% then cost of common stock would be |
| A. | 0.00% |
| B. | 2.29% |
| C. | 4.28% |
| D. | 0.00% |
| Answer» C. 4.28% | |
| 761. |
If payout ratio is 0.45 then retention ratio will be |
| A. | 0.55 |
| B. | 0.45 |
| C. | 0.82 |
| D. | 0.45 |
| Answer» B. 0.45 | |
| 762. |
For each component of capital, a required rate of return is considered as |
| A. | omponent cost |
| B. | valuating cost |
| C. | sset cost |
| D. | sset depreciation value |
| Answer» B. valuating cost | |
| 763. |
Interest rates, tax rates and market risk premium are factors which an/a |
| A. | ndustry cannot control |
| B. | ndustry cannot control |
| C. | irm must control |
| D. | irm cannot control |
| Answer» E. | |
| 764. |
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 |
| A. | 5.25% |
| B. | .1525 times |
| C. | 5.25 |
| D. | .15% |
| Answer» B. .1525 times | |
| 765. |
A type of beta which incorporates about company such as changes in capital structure is classified as |
| A. | ndustry beta |
| B. | arket beta |
| C. | ubtracted beta |
| D. | undamental beta |
| Answer» E. | |
| 766. |
Stock selling price is Rs 45, an expected dividend is Rs 10 and an expected growth rate is 8% then cost of common stock would be |
| A. | 5.00% |
| B. | 5.00% |
| C. | 0.00% |
| D. | 0.22% |
| Answer» E. | |
| 767. |
Bond risk premium is added in to bond yield to calculate the |
| A. | ost of American option |
| B. | ost of European option |
| C. | ost of common stock |
| D. | ost of preferred stock |
| Answer» D. ost of preferred stock | |
| 768. |
If future return on common stock is 14% and rate on T-bonds is 5% then current market risk premium will be |
| A. | 9.00% |
| B. | .00% |
| C. | s 9 |
| D. | s 19 |
| Answer» C. s 9 | |
| 769. |
Cost of common stock is 16% and bond yield is 9% then bond risk premium would be |
| A. | .00% |
| B. | .00% |
| C. | .78% |
| D. | 5.00% |
| Answer» B. .00% | |
| 770. |
Variability for expected returns for projects is classified as |
| A. | xpected risk |
| B. | tand-alone risk |
| C. | ariable risk |
| D. | eturning risk |
| Answer» C. ariable risk | |
| 771. |
Cost of common stock is 13% and bond risk premium is 5% then bond yield would be |
| A. | 0.00% |
| B. | .60% |
| C. | .00% |
| D. | 8.00% |
| Answer» D. 8.00% | |
| 772. |
An attempt to make correction by adjusting historical beta to make it closer to an average beta is classified as |
| A. | djusted stock |
| B. | djusted beta |
| C. | djusted coefficient |
| D. | djusted risk |
| Answer» C. djusted coefficient | |
| 773. |
Method uses for an estimation of cost of equity is classified as |
| A. | arket cash flow |
| B. | uture cash flow method |
| C. | iscounted cash flow method |
| D. | resent cash flow method |
| Answer» D. resent cash flow method | |
| 774. |
Retention ratio is 0.60 and return on equity is 15.5% then growth retention model would be |
| A. | 4.90% |
| B. | 5.84% |
| C. | 6.10% |
| D. | .30% |
| Answer» E. | |
| 775. |
Interest rate is 12% and tax savings (1-0.40) then after-tax component cost of debt will be |
| A. | .20% |
| B. | .40% |
| C. | 7.14% |
| D. | 7.24% |
| Answer» B. .40% | |
| 776. |
Wages and salaries of employees which company owns in this accounts are called |
| A. | ccrued expenses |
| B. | ccruals accounts |
| C. | oth A and B |
| D. | ero liabilities |
| Answer» D. ero liabilities | |
| 777. |
Right side of balance sheet states the |
| A. | ppreciated earnings |
| B. | iabilities |
| C. | ssets |
| D. | tocks earnings |
| Answer» D. tocks earnings | |
| 778. |
Prices of bonds will be decreased if an interest rates |
| A. | ises |
| B. | eclines |
| C. | quals |
| D. | one of above |
| Answer» B. eclines | |
| 779. |
Rate of return that an investment provides its investor is classified as |
| A. | nvestment return rate |
| B. | nternal rate of return |
| C. | nternational rate of return |
| D. | ntrinsic rate of return |
| Answer» C. nternational rate of return | |
| 780. |
Land, buildings, and factory fixed equipment are classified as |
| A. | angible asset |
| B. | on-tangible assets |
| C. | inancial asset |
| D. | inancial liability |
| Answer» B. on-tangible assets | |
| 781. |
In calculation of net cash flow, deferred tax payments are classified as |
| A. | on-cash revenues |
| B. | on-cash charges |
| C. | urrent liabilities |
| D. | ncome expense |
| Answer» C. urrent liabilities | |
| 782. |
An information uses by investors for expecting future earnings is all recorded in |
| A. | ive years report |
| B. | nnual report |
| C. | tock report |
| D. | xchange report |
| Answer» C. tock report | |
| 783. |
Security present value is Rs 100 and future value is Rs 150 after 10 years and value of 'I = interest rate' will be |
| A. | .14% |
| B. | .59% |
| C. | .69% |
| D. | .79% |
| Answer» B. .59% | |
| 784. |
An income available for shareholders after deducting expenses and taxes from revenues is classified as |
| A. | et income |
| B. | et earnings |
| C. | et expenses |
| D. | et revenues |
| Answer» B. et earnings | |
| 785. |
If common shares outstanding are 50,000,000 and book value per share is Rs 19.92 then total common equity will be |
| A. | s 996,000,000.00 |
| B. | s 995,000,000.00 |
| C. | s 992,000,000.00 |
| D. | s 991,000,000.00 |
| Answer» B. s 995,000,000.00 | |
| 786. |
Type of basic financial statements consist of |
| A. | alance sheet and income statement |
| B. | tatement of retained earning |
| C. | tatement of cash flows |
| D. | ll of above |
| Answer» E. | |
| 787. |
Purchase cost of assets over its useful life is classified as |
| A. | ppreciation |
| B. | epreciation |
| C. | ppreciated assets |
| D. | ppreciated liabilities |
| Answer» C. ppreciated assets | |
| 788. |
Number of shares outstanding if it is divided by net income for using to calculate |
| A. | arning per share |
| B. | ividends per share |
| C. | ook value of share |
| D. | arket value of shares |
| Answer» B. ividends per share | |
| 789. |
Securities with less predictable prices and have longer maturity time is considered as |
| A. | ash equivalents |
| B. | ong-term investments |
| C. | nventories |
| D. | hort-term investments |
| Answer» E. | |
| 790. |
In balance sheet, sum of retained earnings and common stock are considered as |
| A. | referred equity |
| B. | ue equity |
| C. | ommon perpetuity |
| D. | ommon equity |
| Answer» E. | |
| 791. |
Value of net income is Rs 124,500,000 and common shares outstanding are Rs 60,000,000 then earning per share will be |
| A. | s 2.75 |
| B. | s 0.48 |
| C. | s 2.08 |
| D. | s 2.80 |
| Answer» D. s 2.80 | |
| 792. |
In time value of money, nominal rate is |
| A. | ot shown on timeline |
| B. | hown on timeline |
| C. | ultiplied on timeline |
| D. | ivided on timeline |
| Answer» B. hown on timeline | |
| 793. |
Payments if it is made at end of each period such as an end of year is classified as |
| A. | rdinary annuity |
| B. | eferred annuity |
| C. | nnuity due |
| D. | oth A and B |
| Answer» E. | |
| 794. |
In calculation of net cash flow, depreciation and amortization are treated as |
| A. | urrent liabilities |
| B. | ncome expenses |
| C. | on-cash revenues |
| D. | on-cash charges |
| Answer» E. | |
| 795. |
Statement of cash flows are included |
| A. | perating activities |
| B. | nvesting activities |
| C. | inancing activities |
| D. | ll of above |
| Answer» E. | |
| 796. |
Proceeds of company shares of sold stock is recorded in |
| A. | referred stock account |
| B. | ommon stock account |
| C. | ue stock account |
| D. | receded stock account |
| Answer» C. ue stock account | |
| 797. |
An annual estimated costs of assets uses up every year are included |
| A. | epreciation and amortization |
| B. | et sales |
| C. | et profit |
| D. | et income |
| Answer» B. et sales | |
| 798. |
Return on assets = 6.7% and equity multiplier = 2.5% then return on equity will be |
| A. | 6.75% |
| B. | .68% |
| C. | .37% |
| D. | .20% |
| Answer» B. .68% | |
| 799. |
High price to earning ratio shows company's |
| A. | ow dividends paid |
| B. | igh risk prospect |
| C. | igh growth prospect |
| D. | igh marginal rate |
| Answer» D. igh marginal rate | |
| 800. |
If profit margin = 4.5% and total assets turnover = 1.8% then return on assets DuPont equation would be |
| A. | .50% |
| B. | .10% |
| C. | .40% |
| D. | .00% |
| Answer» C. .40% | |