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.Management Sciences
Category: Finance Mcqs
An internal rate of return in capital budgeting can be modified to make it representative of_________?
0
A. Relative outflow
B. Relative inflow
C. Relative cost
D. Relative profitability
Which of the following form of business organization is least regulated?
A. Sole-proprietorship
B. General Partnership
C. Limited Partnership
D. Corporation
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
Price of an outstanding bond increases when market rate___________?
A. Never changes
B. Increases
C. Decreases
D. Earned
A point where profile of net present value crosses horizontal axis at plotted graph indicates project____________________?
A. Costs
B. Cash flows
C. Internal rate of return
D. External rate of return
Modified rate of return and modified internal rate of return with exceed cost of capital if net present value is____________?
A. Positive
B. Negative
C. Zero
D. One
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