Classical

Financial Management - Financial Management Multiple Choice Questions

6:  

The relationship between the cost of equity and financial leverage in accordance with MM proposition II can be expressed by

A.

R = Equity/100

B.

R = Equity/Debt x 100

C.

rE = r0 + (r0 - rD)(1 - TC)

D.

R = Equity/Income

 
 

Option: C

Explanation :


7:  

The call-option value of a callable bond is likely to be high when

A.

interest rates are volatile.

B.

interest rates are low and expected to remain low.

C.

interest rate are high and expected to remain high.

D.

markets are inefficient.

 
 

Option: A

Explanation :


8:  

A project's profitability index is equal to the ratio of the _______ of a project's future cash flows to the project's ______.

A.

present value; initial cash outlay

B.

net present value; initial cash outlay

C.

present value; depreciable basis

D.

net present value; depreciable basis

 
 

Option: A

Explanation :


9:  

Earning Yield computed by

A.

EPS/Current Market Price Per Share

B.

Paid up value of Share/100

C.

EPS/Profit x 100

D.

EPS/Market Price

 
 

Option: A

Explanation :


10:  

Match the following

List-I (Items)                            List-II (Features)

(A) Capital budgeting decision        1. Fixed Assets

(B) Cash Position Ratio                  2. Liquid Ratio

(C) EOQ                                        3. Inventory Control

(D) Cost of Capital                         4. Issue Expenses

                                                    5. Planning

A.

(A) (B) (C) (D)

5    1    4    3

B.

(A) (B) (C) (D)

3    1    4    2

C.

(A) (B) (C) (D)

1    2    3    4

D.

(A) (B) (C) (D)

1    3    2    4

 
 

Option: C

Explanation :




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  • Financial Management MCQ can be used for the preparation of quizzes.
  • Financial Management Questions Answers can be used to prepare for UGC NET Commerce, UGC NET JRF and many more.
  • Financial Management objective type questions answers can be used in the preparation of Ph. D Entrance exams.
  • Financial Management multiple choice questions answers can be used to gain a credit score in various undergraduate and post graduate courses.
  • These questions can also be used by any students for improving their knowledge in Financial Management. 
  • These mcq can also be used by any student of XI or XII standard who has opted to study commerce to increase his knowledge in Financial Management.