Classical

Financial Management - FInancial Management Questions

1:  

A bond issue may be retired by

A.

calling the bonds if there is a call feature.

B.

converting the bonds (if convertible) into common stock.

C.

making a single-sum payment at final maturity.

D.

all of the above.

 
 

Option: D

Explanation :

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2:  

Cost of debt capital can be computed by

A.

Kd = I + (RV - NP/N)/RV + NP/2 x 100

B.

Kd = NP/R - V

C.

Kd = RV - NP/2 x 100

D.

Kd = RV - P/NP

 
 

Option: A

Explanation :

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3:  

Which is the importance of the concept of cost of capital?

A.

Helpful in comparative analysis of various sources of finance

B.

Helpful in Capital structure decisions

C.

Helpful in Capital budgeting process

D.

All of the above

 
 

Option: D

Explanation :

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4:  

After declaration dividends are paid to the shareholders as per the provision of

A.

Indian Companies Act

B.

RBI Act

C.

SEBI Act

D.

Indian Contract Act

 
 

Option: C

Explanation :

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5:  

In a simple perfect capital market, what happens if dividends are brought forward?

A.

Share price goes up.

B.

It is impossible to know.

C.

Share price goes down.

D.

Share price remains the same.

 
 

Option: D

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.