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-9 section-11

Each section contains 100 MCQs on Financial Management .

In case of Gordon's Model, the MP for zero payout is zero. It means that:

A) Shares are not traded B) Shares available free of cost C) Investors are not ready to offer any price D) None of the above

Discuss

Answer & Solution

Answer: Option C

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

In Traditional Approach, which one is correct?

A) k_c rises constantly B) k_d decreases constantly C) k₀ decreases constantly D) None 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 is true?

A) Under Traditional Approach, overall cost of capital remains same B) Under NI Approach, overall cost of capital remains same C) Under NOI Approach, overall cost of capital remains same D) None of the above

Discuss

Answer & Solution

Answer: Option C

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

If there is no inflation during a period, then the Money Cashflow would be equal to:

A) Present Value B) Real Cash flow C) Real Cash flow + Present Value D) Real Cash flow - Present Value

Discuss

Answer & Solution

Answer: Option B

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

Marketable securities are primarily:

A) Equity shares B) Preference shares C) Fixed deposits with companies D) Short-term debt investments

Discuss

Answer & Solution

Answer: Option D

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

Which of the following is not a benefit of carrying inventories?

A) Reduction in ordering cost B) Avoiding lost sales C) Reducing carrying cost D) Avoiding production shortages

Discuss

Answer & Solution

Answer: Option C

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

If A = Annual Requirement, O = Order Cost and C = Carrying Cost per unit per annum, then EOQ:

A) $${\left( {\frac{{2{\text{AO}}}}{{\text{C}}}} \right)^2}$$ B) $$\sqrt {\frac{{2{\text{AO}}}}{{\text{C}}}} $$ C) 2A ÷ OC D) 2AOC

Discuss

Answer & Solution

Answer: Option B

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

If a firm has k_e > r the Walter's Model suggests for:

A) 0% Payout B) 100% Payout C) 50% Payout D) 25% Payout

Discuss

Answer & Solution

Answer: Option A

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

Use of safety stock by a firm would:

A) Increase Inventory Cost B) Decrease Inventory Cost C) No effect on Cost D) None of the above

Discuss

Answer & Solution

Answer: Option A

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

In Capital Budgeting, Sunk cost is excluded because it is:

A) of small amount B) not incremental C) not reversible D) All 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