Financial Management MCQ Questions and Solutions with Explanations | Commerce

A. EBIT and PBT

B. EBIT and EPS

C. Sales and PBT

D. Sales and EPS

A. Feasibility Set Approach

B. Internal Rate of Return

C. Profitability Index Approach

D. Any of the above

A. Average Sales

B. Cost of Goods Sold

C. Total Purchases

D. Total Assets

A. Average Return on Investment

B. Weighted Average Cost of Capital

C. Net Profit Ratio

D. Average Cost of borrowing

A. Long-term Decisions

B. Short-term Decisions

C. Both A and B

D. Neither A nor B

A. Denominator

B. Numerator

C. Both A and B

D. None of these

A. A Higher Receivable Turnover is not desirable

B. Interest Coverage Ratio depends upon Tax Rate

C. Increase in Net Profit Ratio means increase in Sales

D. Lower Debt-Equity Ratio means lower Financial Risk

A. Money Discount Rate

B. Inflation Rate

C. Real Discount Rate

D. Risk free rate of interest

A. OL is one

B. FL is one

C. OL is zero

D. FL is zero

A. Investment, financing and dividend decision

B. Investment, financing and sales decision

C. Financing, dividend and cash decision

D. None of these