finance MCQs – Page 13

Practise multiple-choice questions from finance for competitive examinations and subject revision. Review each marked answer and report any item that may be outdated or unclear.

finance Mcqs
241. Ratios which relate firms stock to its book value per share, cash flow and earnings are classified as_________?
comments icon0

A. Return ratios

B. Marginal ratios

C. Market value ratios

D. Equity ratios

242. Stated value of bonds or face value is considered as_____________?
comments icon0

A. Bond value

B. Par value

C. Per value

D. State value

243. Rate on debt that increases as soon market rises is classified as________?
comments icon0

A. Stable debt rate

B. Market rate debt

C. Floating rate debt

D. Rising bet rate

244. The process of determining the present value of a payment or a stream of payments that is to be received in the future is known as:
comments icon0
A. Discounting

B. Factorization

C. Compounding

D. None of the given options

245. Price earning ratio and price by cash flow ratio are classified as___________?
comments icon0
A. Market value ratios

B. Marginal ratios

C. Equity ratios

D. Return ratios

246. Payback period in which an expected cash flows are discounted with help of project cost of capital is classified as___________________?
comments icon0

A. Discounted cash flows

B. Discounted project cost

C. Discounted payback period

D. Discounted rate of return

247. Falling interest rate leads change to bondholder income which is__________?
comments icon0

A. Increment in income

B. Matured income

C. Reduction in income

D. Frequent income

248. The formula to calculate the present value of a single cash flow is given by:
comments icon0

A. None of these

B. CF1 / (1+r)n

C. C0 + C (1+r)n

D. C2 / (1+r)

249. Which of the following is a special case of annuity, where the stream of cash flows continues forever?
comments icon0

A. Annuity Due

B. Perpetuity

C. Special Annuity

D. Ordinary Annuity

250. Price of an outstanding bond decreases when market rate is_______________?
comments icon0
A. Increased

B. Earned

C. Decreased

D. Never changed

251. An internal rate of return in capital budgeting can be modified to make it representative of_________?
comments icon0

A. Relative inflow

B. Relative outflow

C. Relative cost

D. Relative profitability
252. Product costs include which of the following?
comments icon0

A. Administrative expenses

B. General expenses

C. Selling expenses

D. Manufacturing overhead
253. First step in calculation of net present value is to find out_________?
comments icon0
A. Present value cash flow

B. Future value of equity

C. Future value of cash flow

D. Present value of equity

254. Which of the following ratios are particularly interesting to short term creditors?
comments icon0
A. Liquidity Ratios

B. Market Value Ratios

C. Long-term Solvency Ratios

D. Profitability Ratios

255. A series of constant cash flows that occur at the end of each period for some fixed number of periods is ____________ .
comments icon0

A. annuity due

B. perpetuity

C. multiple cash flows

D. an ordinary annuity
256. Company low earning power and high interest cost cause financial changes which have_____________?
comments icon0
A. High return on assets

B. Low return on equity

C. High return on equity

D. Low return on assets

257. In which of the following type of annuity, cash flows occur at the beginning of each period?
comments icon0

A. Perpetuity

B. Ordinary annuity

C. None of the given options

D. Annuity due
258. Real rate expected cash flows and nominal rate expected cash flows must be______________?
comments icon0
A. Equal

B. Different

C. Inflated

D. Accelerated

259. Type of options that permit bond holder to buy stocks at stated price are classified as______?
comments icon0
A. Warrants

B. Provision

C. Convertibles

D. Guarantee

260. Long period of bond maturity leads to_________?
comments icon0

A. Standing prices

B. More price changes

C. Stable prices

D. Mature prices