Financial Management - FInancial Management Questions

36:  

Current Ratio can be computed by

A.

Stock/Debtors 

B.

Stock/Assets

C.

Current Assets/Current Liabilities

D.

Stock + Cash + Share/100

 
 

Option: C

Explanation :

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37:  

Average Rate of Return can be obtained by

A.

Average Annual Profit/Sales

B.

Sales/Profit x 100

C.

Average Profit/Average investment

D.

Sales/Cash

 
 

Option: C

Explanation :

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38:  

Pay back period computed by

A.

Profit/Sales x 100

B.

Initial Investment (Cost of Project)/Annual Cash Inflow

C.

Initial Investment/100

D.

Profit/Expenses x 100

 
 

Option: B

Explanation :

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39:  

If the intrinsic value of a stock is greater than its market value, which of the following is a reasonable conclusion?

A.

The stock has a low level of risk.

B.

The stock offers a high dividend payout ratio.

C.

The market is undervaluing the stock.

D.

The market is overvaluing the stock.

 
 

Option: C

Explanation :

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40:  

Which is the functions of finance as per John J. Hampton?

A.

Liquidity function

B.

Managing assets

C.

Managing funds

D.

All of the above

 
 

Option: D

Explanation :

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