MCQOPTIONS
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MCQOPTIONS
This section includes 129 Mcqs, each offering curated multiple-choice questions to sharpen your Financial Management/Financial Markets knowledge and support exam preparation. Choose a topic below to get started.
| 101. |
Markowitz model presumed generally investors are |
| A. | risk averse |
| B. | risk natural |
| C. | risk seekers |
| D. | risk moderate |
| Answer» B. risk natural | |
| 102. |
The stock market theory which states that stocks are in equilibrium and impossible for investors to beat the market is classified as an |
| A. | inefficient market hypothesis |
| B. | efficient market hypothesis |
| C. | efficient stock hypothesis |
| D. | inefficient stock hypothesis |
| Answer» C. efficient stock hypothesis | |
| 103. |
In expected rate of return for constant growth, the capital gains is divided by capital gains yield to calculate |
| A. | returning price |
| B. | ending price |
| C. | beginning price |
| D. | regular price |
| Answer» D. regular price | |
| 104. |
The growth in earnings per share is primarily resultant of the growth in |
| A. | dividends |
| B. | asset value |
| C. | fundamental value |
| D. | yearly value |
| Answer» B. asset value | |
| 105. |
An efficient market hypothesis states all public information which is reflected in current market prices is classified as |
| A. | weak form efficiency |
| B. | strong form efficiency |
| C. | market efficiency |
| D. | semi strong efficiency |
| Answer» E. | |
| 106. |
The stock which has fixed payments and failure of payments which do not lead to bankruptcy is classified as |
| A. | common stock |
| B. | preferred stock |
| C. | bonds equity |
| D. | common shares |
| Answer» C. bonds equity | |
| 107. |
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 | |
| 108. |
In expected rate of return for constant growth, an expected yield on capital must be |
| A. | equal to zero |
| B. | greater than expected growth rate |
| C. | less than expected growth rate |
| D. | equal to expected growth rate |
| Answer» E. | |
| 109. |
The value of stock as concluded with the help of analysis by particular investor is classified as |
| A. | particular value |
| B. | intrinsic value |
| C. | fundamental value |
| D. | both b and c |
| Answer» E. | |
| 110. |
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 | |
| 111. |
In expected rate of return for constant growth, the capital gains is divided by beginning price to calculate |
| A. | yield of loan return |
| B. | yield of mortgage return |
| C. | yield of capital gains |
| D. | yield of fixed cost |
| Answer» D. yield of fixed cost | |
| 112. |
The value of stock is $400 and the required rate of return is 20% then the preferred dividend would be |
| A. | 80 |
| B. | 8000 |
| C. | 20 |
| D. | 50 |
| Answer» B. 8000 | |
| 113. |
The dividend expected on the stock during the coming year is classified as |
| A. | current dividend yield |
| B. | expected dividend yield |
| C. | yearly dividend |
| D. | past yield |
| Answer» C. yearly dividend | |
| 114. |
The preferred dividend is divided for required rate of return to calculate |
| A. | value of number of shares |
| B. | value of equity |
| C. | value of preferred stock |
| D. | value of common stock |
| Answer» D. value of common stock | |
| 115. |
A right which controls and prevents transfer from current stockholders to other new stockholders is considered as |
| A. | corporate charter |
| B. | selling charter |
| C. | laws |
| D. | purchase chart |
| Answer» B. selling charter | |
| 116. |
An amount of company retain earnings, return on equity and inflation are factors which effect |
| A. | earnings growth |
| B. | return on assets |
| C. | return on sales |
| D. | return on value |
| Answer» B. return on assets | |
| 117. |
In market analysis, the market multiple is multiplied by firm earnings 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 | |
| 118. |
The value of stock is $300 and the preferred dividend is $60 then the required rate of return would be |
| A. | 18000 |
| B. | 0.2 |
| C. | 20 |
| D. | 5 |
| Answer» C. 20 | |
| 119. |
An expected dividend yield is 5.5% and the expected rate of return is 11.5% then the constant growth rate would be |
| A. | 0.0209 |
| B. | −$6% |
| C. | 0.175 |
| D. | 0.06 |
| Answer» E. | |
| 120. |
The tracking stock of the company is also classified as |
| A. | target stock |
| B. | dividend stock |
| C. | firm part stock |
| D. | tied stock |
| Answer» B. dividend stock | |
| 121. |
The 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. | |
| 122. |
The owners of corporation having certain rights and privileges are considered as |
| A. | special stockholders |
| B. | common stockholders |
| C. | public stocks |
| D. | enactive stocks |
| Answer» C. public stocks | |
| 123. |
In expected rate of return for constant growth, an expected total rate of return must be |
| A. | less than expected yield on dividend |
| B. | greater than expected yield on dividend |
| C. | equal to expected yield on dividend |
| D. | equal to one |
| Answer» D. equal to one | |
| 124. |
The expected dividends in each year and price investor expecting to get at selling of stock are the two components of |
| A. | dividend cash flow |
| B. | expected cash flows |
| C. | price cash flows |
| D. | investing cash |
| Answer» C. price cash flows | |
| 125. |
The value of stock is $1200 and the preferred dividend is $120 then the required rate of return would be |
| A. | 144000 |
| B. | 0.1 |
| C. | 10 |
| D. | 0.2 times |
| Answer» C. 10 | |
| 126. |
In expected rate of return for constant growth, the stock price must grow according to an expected rate and |
| A. | at same price |
| B. | at different price |
| C. | at yielded price |
| D. | at buying price |
| Answer» B. at different price | |
| 127. |
The method of stock valuation which is the multiple of earnings per share, book value and net income is classified as |
| A. | stock multiple analysis |
| B. | dividend multiple analysis |
| C. | market multiple analysis |
| D. | stock and multiple analysis |
| Answer» D. stock and multiple analysis | |
| 128. |
The preferred dividend is $50 and the required rate of return is 2.5% then the value of preferred stock would be |
| A. | 0.2 |
| B. | 125 |
| C. | 2000 |
| D. | 52.5 |
| Answer» D. 52.5 | |
| 129. |
The shares or stocks which are protected against withdrawals of funds by an original stock owners are classified as |
| A. | protected shares |
| B. | founders shares |
| C. | withdrawal shares |
| D. | original shares |
| Answer» C. withdrawal shares | |