MCQOPTIONS
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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.
| 1601. |
*/*_An initial cost is Rs 6000 and probability index is 5.6 then present value of cash flows will be? |
| A. | Rs 25,000.00 |
| B. | Rs 28,000.00 |
| C. | Rs 33,600.00 |
| D. | Rs 30,000.00 |
| Answer» D. Rs 30,000.00 | |
| 1602. |
*/*_The market price of a share of common stock is determined by ___________.? |
| A. | the board of directors of the firm |
| B. | the stock exchange on which the stock is listed |
| C. | the president of the company |
| D. | individuals buying and selling the stock |
| Answer» E. | |
| 1603. |
*/*_When most people refer to the mean, they are referring to the______________.? |
| A. | median |
| B. | arithmetic mean |
| C. | geometric mean |
| D. | cumulative mean |
| Answer» C. geometric mean | |
| 1604. |
*/*_Greater the size of a business unit ________ will be the requirements of working capital.? |
| A. | larger |
| B. | lower |
| C. | no change |
| D. | fixed |
| Answer» B. lower | |
| 1605. |
*/*_Company specific risk is also known as_____________.? |
| A. | market risk |
| B. | systematic risk |
| C. | non-diversifiable risk |
| D. | idiosyncratic risk |
| Answer» D. idiosyncratic risk | |
| 1606. |
*/*_The time required to process and execute an order is called? |
| A. | allowed time |
| B. | lead time |
| C. | accepted time |
| D. | fixed time |
| Answer» C. accepted time | |
| 1607. |
*/*_Relationship between risk and required return is classified as? |
| A. | security market line |
| B. | required return line |
| C. | market risk line |
| D. | risky return line |
| Answer» B. required return line | |
| 1608. |
*/*_Probability distribution is classified as normal if expected return lies between? |
| A. | ( + 1 and -1) |
| B. | ( + 2 and -2) |
| C. | ( + 3 and -3) |
| D. | ( + 4 and -4) |
| Answer» B. ( + 2 and -2) | |
| 1609. |
*/*_According to probability distribution of rates of return, a close outcome to an expected value is shown by? |
| A. | value distribution |
| B. | expected distribution |
| C. | more peaked distribution |
| D. | less peaked distribution |
| Answer» D. less peaked distribution | |
| 1610. |
*/*_Type of premium asked by investors for bearing risk on average stock is classified as? |
| A. | average premium |
| B. | market risk premium |
| C. | stock premium |
| D. | buying discount |
| Answer» C. stock premium | |
| 1611. |
*/*_Market required return is subtracted from risk free rate which is used to calculate? |
| A. | quoted risk premium |
| B. | market risk premium |
| C. | portfolio risk premium |
| D. | unquoted risk premium |
| Answer» C. portfolio risk premium | |
| 1612. |
*/*_Treasury yielded by bond is 7% and market required return is 13% then market risk premium will be? |
| A. | 2.16% |
| B. | 20.00% |
| C. | 6.00% |
| D. | 0.53% |
| Answer» D. 0.53% | |
| 1613. |
*/*_Set of projects or set of investments usually maximize firm value is classified as? |
| A. | optimal capital budget |
| B. | minimum capital budget |
| C. | maximum capital budget |
| D. | greater capital budget |
| Answer» B. minimum capital budget | |
| 1614. |
*/*_In capital budgeting, a negative net present value results in? |
| A. | zero economic value added |
| B. | percent economic value added |
| C. | negative economic value added |
| D. | positive economic value added |
| Answer» D. positive economic value added | |
| 1615. |
*/*_In capital budgeting, positive net present value results in? |
| A. | negative economic value added |
| B. | positive economic value added |
| C. | zero economic value added |
| D. | percent economic value added |
| Answer» C. zero economic value added | |
| 1616. |
*/*_In independent projects evaluation, results of internal rate of return and net present value lead to? |
| A. | cash flow decision |
| B. | cost decision |
| C. | same decisions |
| D. | different decisions |
| Answer» D. different decisions | |
| 1617. |
*/*_In pure play method, a company can calculate its own cost of capital with help of averaging an? |
| A. | other company capital policy |
| B. | other company beta |
| C. | other company cost |
| D. | other division cost |
| Answer» C. other company cost | |
| 1618. |
*/*_Rate of required return by debt holders is used for estimation the? |
| A. | cost of debt |
| B. | cost of equity |
| C. | cost of internal capital |
| D. | cost of reserve assets |
| Answer» B. cost of equity | |
| 1619. |
*/*_A project which have one series of cash inflows and results in one or more cash outflows is classified as? |
| A. | abnormal costs |
| B. | normal cash flows |
| C. | abnormal cash flow |
| D. | normal costs |
| Answer» C. abnormal cash flow | |
| 1620. |
*/*_In calculation of internal rate of return, an assumption states that received cash flow from project must? |
| A. | be reinvested |
| B. | not be reinvested |
| C. | be earned |
| D. | not be earned |
| Answer» B. not be reinvested | |
| 1621. |
*/*_An uncovered cost at start of year is Rs 300, full cash flow during recovery year is Rs 650 and prior years to full recovery is 4 then payback would be? |
| A. | 3.46 years |
| B. | 2.46 years |
| C. | 5.46 years |
| D. | 4.46 years |
| Answer» E. | |
| 1622. |
*/*_Special situation in which large projects are financed by with and securities claims on project's cash flow is classified as? |
| A. | claimed securities |
| B. | project financing |
| C. | stock financing |
| D. | interest cost |
| Answer» C. stock financing | |
| 1623. |
*/*_In capital budgeting, two projects who have cost of capital as 12% is classified as? |
| A. | hurdle rate |
| B. | capital rate |
| C. | return rate |
| D. | budgeting rate |
| Answer» B. capital rate | |
| 1624. |
*/*_Situation in which one project is accepted while rejecting another project in comparison is classified as? |
| A. | present value consent |
| B. | mutually exclusive |
| C. | mutual project |
| D. | mutual consent |
| Answer» C. mutual project | |
| 1625. |
*/*_In retention growth model, payout ratio is subtracted from one to calculate? |
| A. | present value ratio |
| B. | future value ratio |
| C. | retention ratio |
| D. | growth ratio |
| Answer» D. growth ratio | |
| 1626. |
*/*_A stock which is issued to meet specific needs of company is considered as? |
| A. | classified stock |
| B. | specific stock |
| C. | needed stock |
| D. | meeting stock |
| Answer» B. specific stock | |
| 1627. |
*/*_An expected dividend yield is 7.5% and an expected rate of return is 15.5% then constant growth rate will be? |
| A. | 22.00% |
| B. | 8.00% |
| C. | 23.00% |
| D. | 2.06% |
| Answer» C. 23.00% | |
| 1628. |
*/*_An earning before interest, taxes, depreciation and amortization average multiple for publicly traded companies is classified as? |
| A. | entity multiple |
| B. | depreciation multiple |
| C. | earning multiple |
| D. | amortization multiple |
| Answer» B. depreciation multiple | |
| 1629. |
*/*_Preferred stocks are also classified as? |
| A. | intrinsic preference |
| B. | perpetuities |
| C. | extrinsic preference |
| D. | weak preference |
| Answer» C. extrinsic preference | |
| 1630. |
*/*_An expected final stock price is Rs 70 and an expected capital gain is Rs 25 then an original investment would be? |
| A. | Rs 45.00 |
| B. | -Rs 45.00 |
| C. | Rs 95.00 |
| D. | -Rs 95.00 |
| Answer» D. -Rs 95.00 | |
| 1631. |
*/*_A formula such as an original investment plus an expected capital gain is used to calculate? |
| A. | final stock |
| B. | expected stock |
| C. | expected final stock price |
| D. | final stock price |
| Answer» D. final stock price | |
| 1632. |
*/*_An amount of company retain earning, return on equity and inflation are factors which effect? |
| A. | earning growth |
| B. | return on assets |
| C. | return on sales |
| D. | return on value |
| Answer» B. return on assets | |
| 1633. |
*/*_In market analysis, market multiple is multiplied by firm earning before interest, taxes, depreciation and amortization to calculate? |
| A. | market total value |
| B. | firm total value |
| C. | industry value |
| D. | taxes value |
| Answer» C. industry value | |
| 1634. |
*/*_In expected rate of return for constant growth, expected total rate of return is equal to? |
| A. | buying pricing |
| B. | dividend yield |
| C. | rate of return |
| D. | selling pricing |
| Answer» C. rate of return | |
| 1635. |
*/*_An expected final stock price is Rs 45 and an original investment is Rs 25 then an expected capital gain will be? |
| A. | Rs 75.00 |
| B. | -Rs 75.00 |
| C. | -Rs 20.00 |
| D. | Rs 20.00 |
| Answer» E. | |
| 1636. |
*/*_Stockholders having right to elect directors and in smaller firms have high post are classified as? |
| A. | public stocks |
| B. | inactive stocks |
| C. | special stockholders |
| D. | common stockholders |
| Answer» E. | |
| 1637. |
*/*_Second step in calculating value of stock with non-constant growth rate is to find out an? |
| A. | expected intrinsic stock |
| B. | extrinsic stock |
| C. | expected price of stock |
| D. | intrinsic stock |
| Answer» D. intrinsic stock | |
| 1638. |
*/*_Present value of dividends which is expected to be provided in future is classified as an? |
| A. | intrinsic value of stock |
| B. | extrinsic value of stock |
| C. | intrinsic bonds |
| D. | extrinsic bonds |
| Answer» B. extrinsic value of stock | |
| 1639. |
*/*_Two alternative expected returns are compared with help of? |
| A. | coefficient of variation |
| B. | coefficient of deviation |
| C. | coefficient of standard |
| D. | coefficient of return |
| Answer» B. coefficient of deviation | |
| 1640. |
*/*_Required return is 11% and premium for risk is 8% then risk free return will be? |
| A. | 3.00% |
| B. | 19.00% |
| C. | 0.72% |
| D. | 1.38% |
| Answer» B. 19.00% | |
| 1641. |
*/*_Beta coefficient is used to measure market risk which is an index of? |
| A. | coefficient risk volatility |
| B. | market risk volatility |
| C. | stock market volatility |
| D. | portfolio market portfolio |
| Answer» D. portfolio market portfolio | |
| 1642. |
*/*_Past realized rate of return in period t is denoted by? |
| A. | t bar r |
| B. | t hat r |
| C. | r hat t |
| D. | r bar t |
| Answer» E. | |
| 1643. |
*/*_In expected future returns, tighter probability distribution shows risk on given investment which is? |
| A. | smaller |
| B. | greater |
| C. | less risky |
| D. | highly risky |
| Answer» B. greater | |
| 1644. |
*/*_Proceeds of company shares of sold stock is recorded in? |
| A. | preferred stock account |
| B. | common stock account |
| C. | due stock account |
| D. | preceded stock account |
| Answer» C. due stock account | |
| 1645. |
*/*_In retention growth model, percent of net income firms usually pay out as shareholders dividends is classified as? |
| A. | payout ratio |
| B. | payback ratio |
| C. | growth retention ratio |
| D. | present value of ratio |
| Answer» B. payback ratio | |
| 1646. |
*/*_Net worth is also called? |
| A. | asset net of liabilities |
| B. | liabilities net of assets |
| C. | earnings net on assets |
| D. | liabilities net of earnings |
| Answer» B. liabilities net of assets | |
| 1647. |
*/*_Cost of common stock is 16% and bond yield is 9% then bond risk premium would be? |
| A. | 7.00% |
| B. | 9.00% |
| C. | 1.78% |
| D. | 25.00% |
| Answer» B. 9.00% | |
| 1648. |
*/*_Method uses for an estimation of cost of equity is classified as? |
| A. | market cash flow |
| B. | future cash flow method |
| C. | discounted cash flow method |
| D. | present cash flow method |
| Answer» D. present cash flow method | |
| 1649. |
*/*_A type of beta which incorporates about company such as changes in capital structure is classified as? |
| A. | industry beta |
| B. | market beta |
| C. | subtracted beta |
| D. | fundamental beta |
| Answer» E. | |
| 1650. |
*/*_If payout ratio is 0.45 then retention ratio will be? |
| A. | 0.55 |
| B. | 1.45 |
| C. | 1.82 |
| D. | 0.45 |
| Answer» B. 1.45 | |