finance Mcqs
251. An internal rate of return in capital budgeting can be modified to make it representative of_________?
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A. Relative inflow

B. Relative outflow

C. Relative cost

D. Relative profitability
252. Product costs include which of the following?
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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_________?
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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?
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A. Liquidity Ratios

B. Market Value Ratios

C. Long-term Solvency Ratios

D. Profitability Ratios

256. Company low earning power and high interest cost cause financial changes which have_____________?
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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?
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A. Perpetuity

B. Ordinary annuity

C. None of the given options

D. Annuity due
260. Long period of bond maturity leads to_________?
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A. Standing prices

B. More price changes

C. Stable prices

D. Mature prices

261. Capital budgeting decisions are analyzed with help of weighted average and for this purpose____________?
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A. Common stock value is used

B. Component cost is used

C. Cost of capital is used

D. Asset valuation is used

262. A technique uses in comparative analysis of financial statement is_________?
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A. Preference analysis

B. Common size analysis

C. Graphical analysis

D. Returning analysis

264. Tendency of moving together of two variables is classified as_____________?
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A. Variables tendency

B. Move tendency

C. Double tendency

D. Correlation
266. The total assets divided by common equity is a formula uses for calculating _________?
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A. graphical multiplier

B. turnover multiplier

C. stock multiplier

D. equity multiplier
267. An equation in which total assets are multiplied to profit margin is classified as _________?
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A. preference equation

B. common equation

C. turnover equation

D. du DuPont equation
268. Total amount of depreciation charged on long term assets is classified as______________?
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A. Accumulated appreciation

B. Depleted depreciation

C. Accumulated appreciation schedule

D. Accumulated depreciation
269. Purchase cost of assets over its useful life is classified as_________?
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A. Depreciation

B. Appreciated liabilities

C. Appreciation

D. Appreciated assets

271. In capital budgeting, a technique which is based upon discounted cash flow is classified as ___________?
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A. net future value method

B. net capital budgeting method

C. net equity budgeting method

D. net present value method
272. Betas tend to move towards 1.0 with passage of time are classified as__________?
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A. Varied betas

B. Historical betas

C. Standard betas

D. Adjusted betas
273. Low price for earnings ratio is result of________________?
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A. High riskier firms

B. Low riskier firms

C. Low dividends paid

D. High marginal rate

275. According to capital asset pricing model assumptions, investors will borrow unlimited amount of capital at any given___________?
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A. Identical and fixed returns

B. Fixed rate of interest

C. Risk free rate of interest

D. Risk free expected return

276. The graph which is plotted for projected net present value and capital rates is called ___________?
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A. net future value profile

B. net gain profile

C. net present value profile

D. net loss profile

277. Rate of return which is asked by investors is classified as_____________________?
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A. Weighted average cost of capital

B. Weighted cost of capital

C. Mean cost of capital

D. Average cost of capital

278. In financial planning, most high option price will lead to__________?
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A. Longer option period

B. Smaller option period

C. Higher price

D. Lesser price

279. The companies that help to set benchmarks are classified as ___________?
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A. competitive companies

B. return companies

C. benchmark companies

D. analytical companies

280. Correct measure of risk of stock is called_____________?
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A. Beta

B. Alpha

C. Market relevance

D. Variance

285. Relationship between risk and required return is classified as___________?
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A. Riskier return line

B. Market risk line

C. Required return line

D. Security market line
286. If payment of security is paid as $100 at end of year for three years, it is an example of______________?
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A. Fixed payment investment

B. Lump sum amount

C. Annuity

D. Fixed interval investment

294. Difference between actual return on stock and predicted return is considered as___________?
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A. Prediction error

B. Actual error

C. Probability error

D. Random error
296. Other factors held constant, but the lesser project liquidity is because of __________?
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A. shorter payback period

B. less project return

C. greater payback period

D. greater project return

297. Future beta is needed to calculate in most situations is classified as____________?
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A. Standard betas

B. Adjusted betas

C. Varied betas

D. Historical betas