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.Management Sciences
Category: Financial Management Mcqs
Weighted average of probabilities is classified as____________?
A. Average rate of return
B. Expected rate of return
C. Past rate of return
D. Weighted rate of return
Required rate of return in calculating bond’s cash flow is also classified as_______?
A. Going rate of return
B. Yield
C. Earning rate
D. Both A and B
If market interest rate rises above coupon rate, then bond will be sold_____________?
A. Equal to return rate
B. Seasoned price
C. Below its par value
D. Above its par value
Prices of bonds will be decreased if an interest rates_________?
A. Rises
B. Declines
C. Equals
D. None of above
An internal rate of return in capital budgeting can be modified to make it representative of_________?
A. Relative outflow
B. Relative inflow
C. Relative cost
D. Relative profitability
Return on assets = 5.5%, Total assets $3,000 and common equity $1,050 then return on equity would be_________?
A. $22,275
B. 15.71%
C. 1.93%
D. 1.925 times
Type of risk in which beta is equal to one is classified as____________?
A. Multiple risk stock
B. Varied risk stock
C. Total risk stock
D. Average risk stock
Price per ratio is divided by cash flow per share ratio which is used for calculating___________?
A. Dividend to stock ratio
B. Sales to growth ratio
C. Cash flow to price ratio
D. Price to cash flow ratio
If net present value is positive, then profitability index will be__________?
A. Greater than two
B. Equal to
C. Less than one
D. Greater than one
If market interest rate falls below coupon rate then bond will be sold__________?
A. Below its par value
B. Above its par value
C. Equal to return rate
D. Seasoned price
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