Financial Management MCQ Questions and Solutions with Explanations

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Financial Management MCQ Questions and answers with easy and logical explanations. Commerce provides you all type of quantitative and competitive aptitude mcq questions with easy and logical explanations. Financial Management MCQ is important for exams like B.COM, M.COM, BBA, BBM, CA, CS, CMA, CPA, CFA, UPSC, NET, Banking and other commerce department exam. Page-10 section-12

Each section contains 100 MCQs on Financial Management .

Return on Investment may be improved by:

A) Increasing Turnover B) Reducing Expenses C) Increasing Capital Utilization D) All of the above

Discuss

Answer & Solution

Answer: Option D

No explanation is given for this question. Let's Discuss on Board

Which of the following stresses on investor's preference reorient dividend than higher future capital gains?

A) Walter's Model B) Residuals Theory C) Gordon's Model D) MM Model

Discuss

Answer & Solution

Answer: Option C

No explanation is given for this question. Let's Discuss on Board

Cost of Capital for Bonds and Debentures is calculated on:

A) Before Tax basis B) After Tax basis C) Risk-free Rate of Interest basis D) None of the above

Discuss

Answer & Solution

Answer: Option B

No explanation is given for this question. Let's Discuss on Board

In India, Commercial Papers are issued as per the guidelines issued by:

A) Securities and Exchange Board of India B) Reserve Bank of India C) Forward Market Commission D) None of the above

Discuss

Answer & Solution

Answer: Option B

No explanation is given for this question. Let's Discuss on Board

Operating Leverage is calculated as:

A) Contribution ÷ EBIT B) EBIT ÷ PBT C) EBIT ÷ Interest D) EBIT ÷ Tax

Discuss

Answer & Solution

Answer: Option A

No explanation is given for this question. Let's Discuss on Board

In case of partially debt-financed firm, k₀ is less:

A) k_d B) k_c C) Both A and B D) None of the above

Discuss

Answer & Solution

Answer: Option B

No explanation is given for this question. Let's Discuss on Board

Savings in respect of a cost is treated in capital budgeting as:

A) An Inflow B) An Outflow C) Nil D) None of the above

Discuss

Answer & Solution

Answer: Option A

No explanation is given for this question. Let's Discuss on Board

Evaluation of Capital Budgeting Proposals is based on Cash Flows because:

A) Cash Flows are easy to calculate B) Cash Flows are suggested by SEBI C) Cash is more important than profit D) None of the above

Discuss

Answer & Solution

Answer: Option C

No explanation is given for this question. Let's Discuss on Board

In order to calculate EPS, Profit after Tax and Preference Dividend is divided by:

A) MP of Equity Shares B) Number of Equity Shares C) Face Value of Equity Shares D) None of the above

Discuss

Answer & Solution

Answer: Option B

No explanation is given for this question. Let's Discuss on Board

100

Which of the following is not incorporated in Capital Budgeting?

A) Tax-Effect B) Time Value of Money C) Required Rate of Return D) Rate of Cash Discount

Discuss

Answer & Solution

Answer: Option D

No explanation is given for this question. Let's Discuss on Board

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Financial Management MCQ Questions and Solutions with Explanations | Commerce