Financial Management - FInancial Management Questions

6:  

Cost of depreciation fund computed as

A.

Long term loan capital

B.

Dividend

C.

Short term loan capital

D.

Profit

 
 

Option: A

Explanation :

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7:  

Payout Ratio computed by

A.

(Dividend Per Share/Earnings Per Share )x 100

B.

Net Profit x/Dividend x 100

C.

Share/Net Profit x 100

D.

Earnings Per Share/Dividend Per Share x 100

 
 

Option: A

Explanation :

The payout ratio is commonly calculated in one of two ways, either on a total basis, in which case the ratio is calculated by dividing the total amount of dividends paid out by the company's total net income, or on a per share basis where the formula used is dividends per share divided by earnings per share

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Durga Prasad Mohapatra said: (9:26pm on Thursday 1st June 2017)
Ans is a) DPS/EPS*100Please describe how option b) was choosed

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8:  

Which formula may be used for cost of Preference Share Capital?

A.

Rate of Dividend/Net Proceeds x 100

B.

Rate of Dividend/Net Proceeds with Cash x 100

C.

Net Proceeds/Capital

D.

Dividend/Profit

 
 

Option: A

Explanation :

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9:  

What should be for cost of retained earning?

A.

Brokerage payable on investment of dividend received

B.

Income tax rate of individual shareholder

C.

Dividend which would be distributed as an alternate to retained earnings

D.

All of the above

 
 

Option: D

Explanation :

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10:  

Which of these is an appropriate measure of individual share risk (i.e. the risk of a single share held as part of a portfolio)?

A.

Variance.

B.

Beta.

C.

Standard deviation.

D.

Correlation.

 
 

Option: B

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.