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-7 section-12

Each section contains 100 MCQs on Financial Management .

Depreciation is incorporated in cash flows because it:

A) is unavoidable cost B) is a cash flow C) reduces tax liability D) involves an outflow

Discuss

Answer & Solution

Answer: Option C

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

Constant Dividend Per Share' Policy is considered as:

A) Increasing Dividend Policy B) Decreasing Dividend Policy C) Stable Dividend Policy D) None of the above

Discuss

Answer & Solution

Answer: Option C

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

Relationship between change in Sales and the Operating Profit is known as:

A) Financial Leverage B) Operating Leverage C) Net Profit Ratio D) Gross Profit Ratio

Discuss

Answer & Solution

Answer: Option B

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

Dividend irrelevance argument of MM Model is based on:

A) Issue of Debentures B) Issue of Bonus Share C) Arbitrage D) Hedging

Discuss

Answer & Solution

Answer: Option C

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

Every company should follow:

A) High Dividend Payment B) Low Dividend Payment C) Stable Dividend Payment D) Fixed Dividend Payment

Discuss

Answer & Solution

Answer: Option C

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

Financial Planning deals with:

A) Preparation of Financial Statements B) Planning for a Capital Issue C) Preparing Budgets D) All of the above

Discuss

Answer & Solution

Answer: Option C

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

Stock split is a form of:

A) Dividend payment B) Bonus issue C) Financial restructuring D) Dividend in kind

Discuss

Answer & Solution

Answer: Option C

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

If the Real rate of return is 10% and Inflation rate is 40%, then Money Discount Rate is:

A) 14.4% B) 2.5% C) 25% D) 14%

Discuss

Answer & Solution

Answer: Option A

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

Cost of capital may be defined as:

A) Weighted Average cost of all debts B) Rate of Return expected by Equity Shareholders C) Average IRR of the Projects of the firm D) Minimum Rate of Return that the firm should earn

Discuss

Answer & Solution

Answer: Option D

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

For a constant EBIT, if the debt level is further increased then:

A) EPS will always increase B) EPS may increase C) EPS will never increase D) None of the above

Discuss

Answer & Solution

Answer: Option B

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