Business Finance MCQ Questions and Solutions with Explanations | Commerce

A. difference between agreed rate and spot rate at the time of entering into contract

B. difference between agreed rate and spot rate on the due date of contract

C. forward premium

D. discount annualised

A. Stock split

B. Stock dividend

C. Extra dividend

D. Regular dividend

A. Retained earnings are the only source of financing

B. The cost of capital does not remain constant

C. The return on investment fluctuates

D. All of the above

A. fixed capital of the company

B. permanent capital of the company

C. fluctuating capital of the company

D. loan capital of the company

A. the price of one currency relative to gold

B. the value of a currency relative to inflation

C. the change in the value of money over time

D. the price of one currency relative to another

A. Internal Rate of Return Method

B. Net Present Value Method

C. Modified Internal Rate of Returns Method

D. Accounting or Average Rate of Return Method

A. Risk and EPS

B. Risk and value of the firm

C. Risk and the required rate of return

D. None of the above

A. Sometimes, IRR fails to indicate correct choice between mutually exclusive projects

B. Payback period is widely used since it is a measure of profitability

C. Both A and B

D. None of the above

A. Simulation Analysis

B. Break-even Analysis

C. Corporate Risk Analysis

D. Scenario Analysis

A. $$\frac{{{\text{Contribution}}}}{{{\text{Operating Profit}}}}$$

B. $$\frac{{{\text{Sales }} - {\text{ Variable cost}}}}{{{\text{Earning before interest and tax}}}}$$

C. $$\frac{{{\text{Percentage change in EBIT}}}}{{{\text{Percentage change in sales}}}}$$

D. All of the above