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.
| 2401. |
Sum of discounted cash flows is best defined as |
| A. | technical equity |
| B. | defined future value |
| C. | project net present value |
| D. | equity net present value |
| Answer» D. equity net present value | |
| 2402. |
Present value of future cash flows is divided by an initial cost of project to calculate |
| A. | negative index |
| B. | exchange index |
| C. | project index |
| D. | profitability index |
| Answer» E. | |
| 2403. |
Type of cost which is used to raise common equity by reinvesting internal earnings is classified as |
| A. | cost of mortgage |
| B. | cost of common equity |
| C. | cost of stocks |
| D. | cost of reserve assets |
| Answer» C. cost of stocks | |
| 2404. |
Average rate of return which is required by all investors of company is classified as |
| A. | extrinsic cost of capital |
| B. | weighted average cost of capital |
| C. | mean cost of capital |
| D. | standard cost of cash |
| Answer» C. mean cost of capital | |
| 2405. |
An expected rate of return is subtracted from capital gains yield to calculate |
| A. | expected dividend yield |
| B. | capital earning |
| C. | casual growth |
| D. | specialized growth rate |
| Answer» B. capital earning | |
| 2406. |
After-the-fact rate of return often consider as realized or actual can be denoted |
| A. | s hat r |
| B. | r bar s |
| C. | r hat s |
| D. | s bar r |
| Answer» C. r hat s | |
| 2407. |
Value of future dividends after horizon date is classified as |
| A. | hypothesis value |
| B. | horizon value |
| C. | terminal value |
| D. | Both B and C |
| Answer» E. | |
| 2408. |
Stock in large companies and own by people who are not active in management is classified as |
| A. | self-held stock |
| B. | privately held stock |
| C. | publicly held stock |
| D. | enactive held stock |
| Answer» D. enactive held stock | |
| 2409. |
In expected rate of return for constant growth, an expected dividend yield must be |
| A. | functional decreasing |
| B. | constant |
| C. | continuously growing |
| D. | functional increasing |
| Answer» C. continuously growing | |
| 2410. |
Dividend expected on stock during coming year is classified as |
| A. | current dividend yield |
| B. | expected dividend yield |
| C. | yearly dividend |
| D. | past yield |
| Answer» C. yearly dividend | |
| 2411. |
Value of stock is Rs 300 and preferred dividend is Rs 60 then required rate of return would be |
| A. | 18% |
| B. | 20% |
| C. | 22% |
| D. | 24% |
| Answer» C. 22% | |
| 2412. |
Dividend will grow at non-constant rate for N periods and periods such as N is classified as |
| A. | growth date |
| B. | terminal date |
| C. | horizon date |
| D. | Both B and C |
| Answer» E. | |
| 2413. |
An efficient market hypothesis states in which all public or private information is reflected in current market prices is classified as |
| A. | market efficiency |
| B. | semi strong efficiency |
| C. | weak form efficiency |
| D. | strong form efficiency |
| Answer» E. | |
| 2414. |
Value of stock is Rs 1200 and preferred dividend is Rs 120 then required rate of return would be |
| A. | Rs 144,000.00 |
| B. | 10.00% |
| C. | Rs 10.00 |
| D. | 0.2 times |
| Answer» C. Rs 10.00 | |
| 2415. |
Constant growth rate is 7.2% and an expected rate of return is 12.5% then expected dividend yield will be |
| A. | 5.30% |
| B. | 19.70% |
| C. | -5.30% |
| D. | 17.36% |
| Answer» B. 19.70% | |
| 2416. |
Paid dividend is Rs 20 and dividend yield is 40% then current price would be |
| A. | 60.00% |
| B. | Rs 60.00 |
| C. | Rs 50.00 |
| D. | 2.00% |
| Answer» D. 2.00% | |
| 2417. |
For investors, steeper slope of indifference curve shows more |
| A. | risk averse investor |
| B. | risk taker investor |
| C. | in differential investor |
| D. | ineffective investment |
| Answer» B. risk taker investor | |
| 2418. |
Standard deviation of tighter probability distribution is |
| A. | long-termed |
| B. | short-termed |
| C. | risky |
| D. | smaller |
| Answer» E. | |
| 2419. |
An amount invested is Rs 1500 and an amount received is Rs 2000 then return would be |
| A. | Rs 500.00 |
| B. | -Rs 500.00 |
| C. | Rs 3,500.00 |
| D. | -Rs 3,500.00 |
| Answer» B. -Rs 500.00 | |
| 2420. |
An inflation free rate of return and inflation premium are two components of |
| A. | quoted rate |
| B. | unquoted rate |
| C. | steeper rate |
| D. | portfolio rate |
| Answer» B. unquoted rate | |
| 2421. |
Dollar return is divided by invested amount which is used for calculating the |
| A. | rate of return |
| B. | return amount |
| C. | investment rate |
| D. | received amount |
| Answer» B. return amount | |
| 2422. |
Financial assets ______. |
| A. | directly contribute to the country's productive capacity |
| B. | indirectly to the country's productive capacity |
| C. | contribute to the country's productive capacity both directly and indirectly |
| D. | do not contribute to the country's productive capacity either directly or indirectly |
| Answer» B. indirectly to the country's productive capacity | |
| 2423. |
__________ is concerned with the acquisition, financing, and management of assets with some overall goal in mind. |
| A. | Financial management |
| B. | Profit maximization |
| C. | Agency theory |
| D. | Social responsibility |
| Answer» B. Profit maximization | |
| 2424. |
Which of the following represents the rate at which a company can grow from internal sources? |
| A. | return on assets |
| B. | sustainable growth rate |
| C. | adjusted EPS |
| D. | return on equity |
| Answer» C. adjusted EPS | |
| 2425. |
The Degree of Financial Leverage (DFL) |
| A. | Measures financial risk of the firm |
| B. | Is zero at financial break-even point |
| C. | Increases as EBIT increases |
| D. | Both a and b |
| Answer» B. Is zero at financial break-even point | |
| 2426. |
A bond issue is broken up so that some investors will receive only interest payments while others will receive only principal payments, which is an example of ________. |
| A. | bundling |
| B. | un-bundling |
| C. | financial engineering |
| D. | credit enhancement |
| E. | B & C |
| Answer» F. | |
| 2427. |
Which of the following is a function of the finance manager? |
| A. | Mobilizing funds |
| B. | Risk returns trade off |
| C. | Deployment of funds |
| D. | Control over the uses of funds |
| E. | All of above |
| Answer» F. | |
| 2428. |
Firms that specialize in helping companies raise capital by selling securities are called ________. |
| A. | commercial banks |
| B. | investment banks |
| C. | savings banks |
| D. | credit unions |
| Answer» C. savings banks | |
| 2429. |
What is the most appropriate goal of the firm? |
| A. | Shareholder wealth maximization |
| B. | Profit maximization |
| C. | Stakeholder maximization |
| D. | EPS maximization |
| Answer» B. Profit maximization | |
| 2430. |
The key item for investors on the income statement is______________. |
| A. | sales |
| B. | gross profit |
| C. | operating expenses |
| D. | after-tax net income |
| Answer» E. | |
| 2431. |
The use of preference share capital as against debt finance. |
| A. | Reduces DFL |
| B. | Increases DFL |
| C. | Increases financial risk |
| D. | Both a and b |
| Answer» B. Increases DFL | |
| 2432. |
The central issue of efficient markets concerns______________. |
| A. | regulations |
| B. | information |
| C. | participants |
| D. | structure |
| Answer» C. participants | |
| 2433. |
________ decision relates to the determination of total amount of assets to be held in the firm. |
| A. | Financing |
| B. | Investment |
| C. | Dividend |
| D. | Controlling |
| Answer» E. | |
| 2434. |
Financial intermediaries exist because small investors cannot efficiently ________. |
| A. | diversify their portfolios |
| B. | gather all relevant information |
| C. | assess credit risk of borrowers |
| D. | advertise for needed investments |
| E. | all of above |
| Answer» F. | |
| 2435. |
Depreciation is include in costs in case of __________. |
| A. | Pay back method |
| B. | Accounting rate |
| C. | Discounted cash flow |
| D. | Present value method |
| Answer» C. Discounted cash flow | |
| 2436. |
In which of the following sections of a balance sheet are "Inventories" listed? |
| A. | Current assets |
| B. | Property, plant and equipment, at cost |
| C. | Current liabilities |
| D. | Shareholders' Equity |
| Answer» B. Property, plant and equipment, at cost | |