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.Management Sciences
Category: Finance Mcqs
Risk of fall in income due to fall in interest rates in future is classified as__________?
A. Income risk
B. Investment risk
C. Reinvestment risk
D. Mature risk
High price to earnings ratio shows company’s_________?
A. Low dividends paid
B. High risk prospect
C. High growth prospect
D. High marginal rate
Future beta is needed to calculate in most situations is classified as____________?
A. Historical betas
B. Adjusted betas
C. Standard betas
D. Varied betas
Method uses for an estimation of cost of equity is classified as___________?
A. Market cash flow
B. Future cash flow method
C. Discounted cash flow method
D. Present cash flow method
An interest rate which is paid by firm as soon as it issues debt is classified as pre-tax__________?
A. Term structure
B. Market premium
C. Risk premium
D. Cost of debt
A theory which states that assets are traded at price equal to its intrinsic value is classified as___________________?
A. Efficient money hypothesis
B. Efficient market hypothesis
C. Inefficient market hypothesis
D. Inefficient money hypothesis
Capital budgeting decisions are analyzed with help of weighted average and for this purpose____________?
A. Component cost is used
B. Common stock value is used
C. Cost of capital is used
D. Asset valuation is used
Stated value of bonds or face value is considered as_____________?
A. State value
B. Par value
C. Bond value
D. Per value
Price earning ratio and price by cash flow ratio are classified as___________?
A. Marginal ratios
B. Equity ratios
C. Return ratios
D. Market value ratios
Federal government tax revenues if it exceeds government spending then it is classified as___________?
A. Budget surplus
B. Budget deficit
C. Federal reserve
D. Federal budget
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