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36. Current Ratio can be computed by
Stock/Debtors
Stock/Assets
Current Assets/Current Liabilities
Stock + Cash + Share/100
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37. Average Rate of Return can be obtained by
Average Annual Profit/Sales
Sales/Profit x 100
Average Profit/Average investment
Sales/Cash
38. Pay back period computed by
Profit/Sales x 100
Initial Investment (Cost of Project)/Annual Cash Inflow
Initial Investment/100
Profit/Expenses x 100
39. If the intrinsic value of a stock is greater than its market value, which of the following is a reasonable conclusion?
The stock has a low level of risk.
The stock offers a high dividend payout ratio.
The market is undervaluing the stock.
The market is overvaluing the stock.
40. Which is the functions of finance as per John J. Hampton?
Liquidity function
Managing assets
Managing funds
All of the above
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