Classical

Financial Management - Financial Management Objective Questions

11:  

The expected rate of return on a bond if bought at its current market price and held to maturity.

A.

yield to maturity

B.

current yield

C.

coupon yield

D.

capital gains yield

 
 

Option: A

Explanation :


12:  

Return on Assets can be expressed by

A.

Sales/Profit

B.

Fixed Cost/Sales

C.

Sales/Fixed Cost

D.

Net Income/Average Total Assets

 
 

Option: D

Explanation :


13:  

The public sale of common stock in a subsidiary in which the parent usually retains majority control is called

A.

a pure play

B.

a spin-off

C.

a partial sell-off

D.

an equity carve-out

 
 

Option: D

Explanation :


14:  

Which type of function may be performed by the finance manager for management of profitability?

A.

Forecasting future Profits

B.

Pricing

C.

Cost control

D.

All of the above

 
 

Option: D

Explanation :


15:  

Managerial options can be viewed as

A.

methods for reducing agency risk through the use of incentives

B.

methods for reducing total firm risk through diversification

C.

strategies for increasing management compensation

D.

opportunities for altering management decisions in the future

 
 

Option: B

Explanation :




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