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.Management Sciences
Category: Financial Management Mcqs
An option that gives investors right to sell a stock at predefined price is classified as____________?
A. Put option
B. Call option
C. Money back options
D. Out of money options
Situation in which firm limits expenditures on capital is classified as________?
A. Optimal rationing
B. Capital rationing
C. Marginal rationing
D. Transaction rationing
Standard deviation is 18% and expected return is 15.5% then coefficient of variation would be__________?
A. 0.86%
B. 1.16%
C. 2.50%
D.−2.5%
Firm’s promise to pay and is backed or guaranteed by bank is classified as____________?
A. Customer’s acceptance
B. Banker’s acceptance
C. Federal acceptance
D. Treasury acceptance
Weighted average cost of debt, preferred stock and common equity is classified as_____________?
A. Cost of salvage
B. Cost of interest
C. Cost of taxation
D. Cost of capital
Stock issued by company have lower rate of return because of___________?
A. High market to book ratio
B. Low book to market ratio
C. Low market to book ratio
D. High book to market ratio
Betas tend to move towards 1.0 with passage of time are classified as__________?
A. Standard betas
B. Varied betas
C. Historical betas
D. Adjusted betas
Price per share divided by earnings per share is formula for calculating_________?
A. Price earnings ratio
B. Earning price ratio
C. Pricing ratio
D. Earning ratio
Hewlett-Packard and Microsoft are examples of__________?
A. Limited corporate business
B. Unlimited corporate business
C. Controlled corporate business
D. Corporation
Variability for expected returns for projects is classified as___________?
A. Expected risk
B. Stand-alone risk
C. Variable risk
D. Returning risk
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