Financial Management MCQ Questions and Solutions with Explanations

Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Section 7 Section 8 Section 9 Section 10 Section 11 Section 12 Section 13 Section 14 Section 15

1.
Price per share is Rs 25 and cash flow per share is Rs 6 then price to cash flow ratio would be

A. 0.24 times

B. 4.16 times

C. 4.16%

D. 24.00%

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2.
Low price for earning ratio is result of

A. low risky firms

B. high risky firms

C. low dividends paid

D. high marginal rate

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3.
Profit margin = 4.5%, assets turnover = 2.2 times, equity multiplier = 2.7 times then return on equity will be

A. 26.73%

B. 25.73%

C. 9.40%

D. 9.00%

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4.
Formula such as net income available for common stockholders divided by total assets is used to calculate

A. return on total assets

B. return on total equity

C. return on debt

D. return on sales

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5.
Price per ratio is divided by cash flow per share ratio which is used for calculating

A. dividend to stock ratio

B. sales to growth ratio

C. cash flow to price ratio

D. price to cash flow ratio

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Financial Management MCQ Questions and Solutions with Explanations | Commerce

1. Price per share is Rs 25 and cash flow per share is Rs 6 then price to cash flow ratio would be

Answer & Solution

2. Low price for earning ratio is result of

Answer & Solution

3. Profit margin = 4.5%, assets turnover = 2.2 times, equity multiplier = 2.7 times then return on equity will be

Answer & Solution

4. Formula such as net income available for common stockholders divided by total assets is used to calculate

Answer & Solution

5. Price per ratio is divided by cash flow per share ratio which is used for calculating

Answer & Solution

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1.
Price per share is Rs 25 and cash flow per share is Rs 6 then price to cash flow ratio would be

2.
Low price for earning ratio is result of

3.
Profit margin = 4.5%, assets turnover = 2.2 times, equity multiplier = 2.7 times then return on equity will be

4.
Formula such as net income available for common stockholders divided by total assets is used to calculate

5.
Price per ratio is divided by cash flow per share ratio which is used for calculating