A company having easy access to the capital markets can follow a ____________. dividend policy
1. liberal.
2.formal
3.strict
4.Varying
A fixed rate of ____________is payable on debentures.
1.dividend
2.commission
3.interest
4.brokerage
A fixed rate of ____________is payable on debentures.
1.dividend
2.commission
3.interest
4.brokerage
Arbitrage is the level processing technique introduced in ____________.
1.. Net income approach
2. MM approach
3.Operating approach
4.Traditional approach.
Factoring is a form of financing ___.
1.payable.
2.receivables
3.borrowings
4.debts
Finance function is one of the most important functions of ____________.
1.business.
2.marketing
3.financial
4.debt
Financial leverage helps one to estimate ____________.
1. the business risk
2.the financial risk
3.both risks
4.production risk.
Future value interest factor takes ____
1. Compounding rate
2.Discounting rate.
3.Inflation rate
4.Deflation rate.
ICICI was formed in _______:
1.1955
2.1665
3.1965
4.1954
If the payback is a bad rule, the average returns on book value is ____________.
1.worse.
2.better
3.the best
4.equal
lndustrial Development Bank of India is
1.Wholly-owned Government of India undertaking
2.Wholly-owned subsidiary of Reserve Bank of India
3.A corporation and owned by the Government of India and public sector banks
4.Public Limited Company
Medium-term notes (MTNs) have maturities that range up to
1.one year (but no more)
2. two years (but no more).
3. ten years (but no more)
4.thirty years (or more)
The financial institute IFCI established in
1. 1947
2.1948
3.1949
4.1950
The formula for cost of debt is __________.
1. kd=(1/2+f-p)/f+p
2.f+p
3. f-P
4. f*p
A demerit of IRR method is that it does not distinguish between ____________.
1. lending & borrowing
2.discounting & non- discounting
3.cash flow & non- cash flow
4. inflow & outflow.
A way to analyze whether debt or lease financing would be preferable is to:
1.compare the net present values under each alternative, using the cost of capital as the discount rate.
2.compare the net present values under each alternative, using the after-tax cost of borrowing as the discount rate.
3.compare the payback periods for each alternative.
4.compare the effective interest costs involved for each alternative
Beta measures the ____________.
1. A. Financial risk.
2.Investment risk rate
3. Market risk
4.Market and finance risk.
Capital budgeting decisions in India cannot be reversed due to ____.
1.economic conditions.
2.ill-organized market for second-hand capital goods
3.government regulations.
4.policy of the management
Capital budgeting is related to ____
1.long terms assets.
2.short term assets.
3. long terms and short terms assets
4.fixed assets.
Corporation is not a part of ____________finance .
1. Public.
2.Private
3. Public & private
4.Organization
Cost of retained earnings is equal to ____________.
1.Cost of equity.
2.Cost of debt.
3.Cost of term loans
4.Cost of bank loan.
Effective cost of debentures is ____________as compared to shares
1.higher
2.lower
3.equal
4.medium
Financial decisions involve ____________.
1. Investment, financing and dividend decisions.
2.Investment sales decisions.
3.Financing cash decisions
4.Investment dividend decisions.
Financial leverage is also known as ____________.
1. Trading on equity
2.Trading on debt.
3. Interest on equity.
4.Interest on debt.
Financial leverage measures ____________.
1.sensitivity of EBIT with respect of 1% change with respect to output
2.1% variation in the level of production .
3.C. sensitivity of EPS with respect to 1% change in level of EBIT
4. no change with EBIT and EPS.
Financial leverage measures ____________.
1.sensitivity of EBIT with respect of 1% change with respect to output
2.1% variation in the level of production .
3.C. sensitivity of EPS with respect to 1% change in level of EBIT
4. no change with EBIT and EPS.
Financial security with low degree risk and investment held by businesses is classified as
1.treasury bills
2.commercial paper
3. negotiable certificate of deposit
4.money market mutual funds
Fixed cost per unit ____________.
1.changes according to the volume of production
2.be flexible according to the rate of interest.
3.does not change with the volume of production
4.remains constant.
Future value interest factor takes ____________.
1.Compounding rate
2.Discounting rate
3.Inflation rate
4.Deflation rate
Future value interest factor takes ____________.
1.. Compounding rate
2.Discounting rate
3. Inflation rate
4. Deflation rate
Greater the size of a business unit ____ will be the requirements of working capital.
1. lower.
2.no change.
3.larger
4.fixed
Headquarter of ICICI Bank is located at:
1.. Mumbai
2.Hyderabad
3.Mysore
4.Bangalore
In his traditional role the finance manager is responsible for ______
1.arrange of utilization of funds.
2.arrangement of financial resources.
3.acquiring capital assets of the organization.
4.effective management of capital
In his traditional role the finance manager is responsible for ___________.
1.proper utilisation of funds
2. arrangement of financial resources
3.acquiring capital assets of the organization
4.Efficient management of capital
Market value of the shares are decided by ____________.
1. the respective companies.
2.the investment market
3.the government.
4. shareholders.
Net present value is a popular method which falls ____________.
1.Within non- discount cash flow method.
2.Within discount cash flow method
3. Equal Within non- discount cash flow method
4.No discount cash flow
Net working capital is the excess of current asset over ____________.
1.. Current liability.
2.Net liability.
3.Total payable.
4.Total liability.
Net working capital refers to.
1. total assets minus fixed assets
2.current assets minus current liabilities
3.current assets minus inventories
4.current assets.
Net working capital refers to.
1. total assets minus fixed assets
2.current assets minus current liabilities
3.current assets minus inventories
4.current assets.
Offering cash discount to customers result is ____________.
1.reducing the average collection period.
2.increasing the average collection period
3.increasing sales
4.decreasing sales.
Operating incomes and the discount rate of a particular risk class are the 2 factors determining ____________.
1.Dependence hypothesis
2.Traditional view.
3.Modern view
4.Independence hypothesis.
Operating leverage = ______..
1. A. contribution less profit.
2.contribution less sales
3.contribution less total expenses
4.contribution less operating profit
Operating leverage measures ____________.
1. A. the business risk.
2.financial risk
3.both risks
4.production risk.
Operating leverage x financial leverage= _____.
1. composite leverage.
2.financial composite leverage.
3.operating composite leverage
4.fixed leverage
Ordering cost is the cost of ____________materials.
1. selling.
2.purchasing
3.stocking
4.financing
Ownership securities are represented by ____________.
1. securities.
2.equities
3.debt
4.debentures
Payback period is superior to other methods, if the objective of the investor is to ____________.
1.consider cash flow in its entirety
2.consider the present value of future cash flows
3.consider the liquidity
4.consider the inflows in its entirety.
Present value takes ____________.
1. A. Compounding rate.
2. Discounting rate.
3.Inflation rate
4.Deflation rate.
Shares having no face value are known as ____
1.no-par stock.
2. at par stock
3.equal stock
4.debt-equity stock.
The available capital funds are to be carefully allocated among competing projects by careful prioritization. This is called ____________.
1.capital positioning.
2.capital structuring
3. capital rationing.
4.capital budgeting.
The cash management refers to management of ___.
1.A. cash only
2.cash and bank balances
3.cash and near-cash assets
4.fixed assets.
The company must implement the bonus issues decision within ____________ of the director approval.
1.6 months.
2.3 months.
3.2 months.
4.1 month.
The decision to invest a substantial sum in any business venture expecting to earn a minimum return is called ____________.
1. working capital decision
2. an investment decision
3.a production decision.
4.a sales decision.
The expansion of CAPM is ____
1.Capital amount pricing model
2.Capital asset pricing model
3.Capital asset printing model.
4.a. Capital amount printing model.
The expansion of EAR is ____.
1. equivalent annual rate.
2.equivalent annuity rate
3. equally applied rate
4. equal advance rate
The first development financial institution in India that has got merged with a bank
1. IDBI
2.ICICI
3.UTI D
4.SFC
The fixed proportion of working capital should be generally financed from the ____ capital sources
1. fixed.
2.variable
3. semi-variable.
4.borrowed
The IDBI was established in
1.964
2.1965
3.1966
4.1967
The most appropriate dividend policy is the payment of ____________dividend per share consent
1.constant.
2.variable
3.higher
4.lower
The most difficult to calculate is ____________.
1.the cost of equity capital.
2. the cost of preferred capital.
3.the cost of retained earnings.
4.. the cost of equity and preference capital.
The policy concerning quarters of profit to be distributed as dividend is termed as ____________.
1.Profit policy.
2.Dividend policy
3.Credit policy.
4.Reserving policy.
The policy concerning quarters of profit to be distributed as dividend is termed as ____________.
1.Profit policy.
2.Dividend policy
3.Credit policy.
4.Reserving policy.
The primary goal of the financial management is ____
1.to maximize the return
2.to minimize the risk
3.to maximize the wealth of owners
4. to maximize profit..
The principal objective to form ICICI was:
1.To create a development financial institution
2.To create a financial institution for providing medium-term and long term project financing
3.Create a financial institution for providing medium-term and long term project financing to Indian businesses
4. All of the above areas
The principal objective was to create a development financial institution for providing ______project financing to Indian businesses:
1.Medium Term
2.Long Term
3.Medium Term and Long Term
4.short term
The probability of bankrupt is higher ____________.
1. for a levered firm than an unlevered firm.
2.for a unlevered firm than an levered firm
3.only levered firm
4.only unlevered firm
The rate of return on investment ____ with the shortage of working capital
1.. falls.
2.going
3.constant
4.change
The required rate of return for an investment project should _____
1.leave the market price of the stock unchanged
2. increase the market price.
3. reduce the market price.
4.constant market price.
The type of lease that includes a third party, a lender, is called a(n)
1. sale and leaseback.
2.direct leasing arrangement.
3. leveraged lease.
4.operating lease.
The volume of sales is influenced by ____ of a firm
1. finance policy.
2. credit policy
3.profit policy
4. fund policy.
Traditional approach confines finance function only to ____________.
1.raising
2.mobilizing
3.utilizing
4.financing
Traditional theorists believe that.
1. there exists an optimal capital structure
2.no optimal capital structure
3.equal optimal capital structure
4.100% debt financial organizations
Variable cost per unit ____________.
1. varies with the level of output.
2.remains constant irrespective of the level of output.
3.changes with the growth of the firm.
4.does not change with the volume of production
Which of the following is/are assumption(s) underlying the Miller and Modigliani analysis?
1.Capital markets are perfect
2.Investors are assumed to be rational and behave accordingly
3.There is no corporate or personal income tax
4.All the above
Which one of the following is not a money market securities?
1.treasury bills
2.National savings certificate
3.Certificate of deposit
4.Commercial paper
Which one of the following is the main objective of Unit Trust of India?
1.To mobilize the savings of high-income groups.
2.To mobilize the savings to low and high-income groups.
3.To mobilize the savings of corporate.
4.To mobilize the savings of low and middle-income groups.
Working capital management is managing ____________.
1.short term assets and liabilities
2. long term assets
3. long terms liabilities
4.only short term assets
_________ dividend is the usual method of paying dividend .
1. Scrip.
2.Cash
3.Stock
4.Property
__________ are financial assets.
1.Bonds
2.Machines
3.Stocks
4.A and C
__________ dividend promises to pay shareholders at future date.
1.Scrip.
2.Cash
3.Stock
4.Property