Commerce · all questions

Business Finance
practice.

Practice every MCQ with options. Use Show answers when you want the correct option and solution.

703

Questions

9/36

Page

Pick an option on a question to see the right answer and solution.

Q161

Which of the following is not a feature of the payback period method?

Select an option to see the answer and solution.

Q162

"Dividend policy determines the division of earnings between payments to shareholders and retained earnings." Who said this?

Select an option to see the answer and solution.

Q163

Which of the following statements are correct regarding profit maximization as the primary goal of the firm?

Select an option to see the answer and solution.

Q164

The explicit costs (in case of cost of debt capital) are measured by the interest rate only adjusted by the

Select an option to see the answer and solution.

Q165

Who formulated the following model for estimating the market price of equity share?

P = \frac{D + \frac{R _{A}}{R _{C}} ( E - D )}{R _{C}}

Where,
P = Market price of equity share
D = DPS
E = EPS
E - D = Retained earnings per share
R_A = Internal rate of return on investment
R_C = Cost of capital

Select an option to see the answer and solution.

Q166

The amount of current assets that varies with seasonal requirements is referred to as

Select an option to see the answer and solution.

Q167

If a firm raises Rs. 1,00,000 by the issue of debentures at 10%, repayable after 10 years, the rate of return that equates the present value of cash inflows with the present value of cash outflows is referred to as

Select an option to see the answer and solution.

Q168

The Dutch auction as a method appliesin India. Which method of stock repurchase occurs when the buyer seeksbids within a specified price range and accepts the lowest price that will allow it to acquire the entire block of securities desired?

Select an option to see the answer and solution.

Q169

If a company goes for a new issue of debentures, what is the impact of such development?
1. The volatility of the returns of equity in relation to a market index is likely to be affected.
2. The beta may rise.
3. The gearing ratio will rise.

Select an option to see the answer and solution.

Q170

In deciding the optimal level of current assets for the firm, a company has to confront with which of the following situation?

Select an option to see the answer and solution.

Q171

"The cost of capital is the minimum rate of return which a firm requires as a condition for undertaking an investment." This definition is given by

Select an option to see the answer and solution.

Q172

Arrange the following steps of operation cycle in correct order
1. Conversion of a accounts receivables into cash.
2. Conversion of work-in-progress into finished goods.
3. Conversion of raw-material into work-in-progress.
4. Conversion of finished goods into accounts receivable.

Select an option to see the answer and solution.

Q173

Which of the following is not a disclosure requirement for finance leases?

Select an option to see the answer and solution.

Q174

Which of the following options are a part of preference shares?

Select an option to see the answer and solution.

Q175

Under dividend reinvestment plan (DRIP):

Select an option to see the answer and solution.

Q176

A company may raise the financial capital in the primary market through

Select an option to see the answer and solution.

Q177

Which of the following is concerned with the maximization of a firm's stock price?

Select an option to see the answer and solution.

Q178

If the going rate of interest is above the coupon rate, the bond will sell

Select an option to see the answer and solution.

Q179

Which of the following statement(s) is/are incorrect?

Select an option to see the answer and solution.

Q180

Monetary policy for the countries using the euro as a currency is now conducted by

Select an option to see the answer and solution.

Prev 7 8 9 10 11 Next