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.Management Sciences
Category: Finance Mcqs
Values recorded as determined in marketplace are considered as_______________?
A. Market values
B. Book values
C. Appreciated values
D. Depreciated values
According to Black Scholes model, stocks with call option pays the__________?
A. Dividends
B. No dividends
C. Current price
D. Past price
In capital budgeting, an internal rate of return of project is classified as its__________?
A. External rate of return
B. Internal rate of return
C. Positive rate of return
D. Negative rate of return
Which of the following is not a quality of IRR ?
A. Most widely used
B. Ideal to rank the mutually exclusive investments
C. Easily communicated and understood
D. Can be estimated even without knowing the discount rate
An annual interest payment divided by current price of bond is considered as_____________?
A. Current yield
B. Maturity yield
C. Return yield
D. Earning yield
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
The investment decision is the most important of the firm’s three major decisions, when it comes to:
A. Value creation
B. Value addition
C. Value proposition
D. Value deletion
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
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