Present value of dividends which is expected to be provided in future is classified as an
A. intrinsic value of stock
B. extrinsic value of stock
C. intrinsic bonds
D. extrinsic bonds
Answer: Option A
Solution(By Examveda Team)
Present value of dividends which is expected to be provided in future is classified as an intrinsic value of stock. The intrinsic value of a stock, on the other hand, attempts to boil out the externals and value a company on its own merits. Internal factors like a firm's products, its management, and the strength of its brands in the marketplace determine intrinsic value. Investors are interested in cash available to stockholders.Investment is the _______________.
A. net additions made to the nation’s capital stocks
B. person’s commitment to buy a flat or house
C. employment of funds on assets to earn returns
D. employment of funds on goods and services that are used in production process
Financial Management is mainly concerned with ______________.
A. All aspects of acquiring and utilizing financial resources for firms activities
B. Arrangement of funds
C. Efficient Management of every business
D. Profit maximization
The primary goal of the financial management is ____________.
A. to maximize the return
B. to minimize the risk
C. to maximize the wealth of owners
D. to maximize profit
In his traditional role the finance manager is responsible for ___________.
A. proper utilisation of funds
B. arrangement of financial resources
C. acquiring capital assets of the organization
D. efficient management of capital
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