Financial Management MCQ Questions and Solutions with Explanations | Commerce

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91.
Return on Investment may be improved by:

A. Increasing Turnover

B. Reducing Expenses

C. Increasing Capital Utilization

D. All of the above

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92.
Which of the following stresses on investor's preference reorient dividend than higher future capital gains?

A. Walter's Model

B. Residuals Theory

C. Gordon's Model

D. MM Model

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93.
Cost of Capital for Bonds and Debentures is calculated on:

A. Before Tax basis

B. After Tax basis

C. Risk-free Rate of Interest basis

D. None of the above

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94.
In India, Commercial Papers are issued as per the guidelines issued by:

A. Securities and Exchange Board of India

B. Reserve Bank of India

C. Forward Market Commission

D. None of the above

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95.
Operating Leverage is calculated as:

A. Contribution ÷ EBIT

B. EBIT ÷ PBT

C. EBIT ÷ Interest

D. EBIT ÷ Tax

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96.
In case of partially debt-financed firm, k₀ is less:

A. k_d

B. k_c

C. Both A and B

D. None of the above

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97.
Savings in respect of a cost is treated in capital budgeting as:

A. An Inflow

B. An Outflow

C. Nil

D. None of the above

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98.
Evaluation of Capital Budgeting Proposals is based on Cash Flows because:

A. Cash Flows are easy to calculate

B. Cash Flows are suggested by SEBI

C. Cash is more important than profit

D. None of the above

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99.
In order to calculate EPS, Profit after Tax and Preference Dividend is divided by:

A. MP of Equity Shares

B. Number of Equity Shares

C. Face Value of Equity Shares

D. None of the above

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100.
Which of the following is not incorporated in Capital Budgeting?

A. Tax-Effect

B. Time Value of Money

C. Required Rate of Return

D. Rate of Cash Discount

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Financial Management MCQ Questions and Solutions with Explanations | Commerce

91. Return on Investment may be improved by:

Answer & Solution

92. Which of the following stresses on investor's preference reorient dividend than higher future capital gains?

Answer & Solution

93. Cost of Capital for Bonds and Debentures is calculated on:

Answer & Solution

94. In India, Commercial Papers are issued as per the guidelines issued by:

Answer & Solution

95. Operating Leverage is calculated as:

Answer & Solution

96. In case of partially debt-financed firm, k0 is less:

Answer & Solution

97. Savings in respect of a cost is treated in capital budgeting as:

Answer & Solution

98. Evaluation of Capital Budgeting Proposals is based on Cash Flows because:

Answer & Solution

99. In order to calculate EPS, Profit after Tax and Preference Dividend is divided by:

Answer & Solution

100. Which of the following is not incorporated in Capital Budgeting?

Answer & Solution

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91.
Return on Investment may be improved by:

92.
Which of the following stresses on investor's preference reorient dividend than higher future capital gains?

93.
Cost of Capital for Bonds and Debentures is calculated on:

94.
In India, Commercial Papers are issued as per the guidelines issued by:

95.
Operating Leverage is calculated as:

96.
In case of partially debt-financed firm, k₀ is less:

97.
Savings in respect of a cost is treated in capital budgeting as:

98.
Evaluation of Capital Budgeting Proposals is based on Cash Flows because:

99.
In order to calculate EPS, Profit after Tax and Preference Dividend is divided by:

100.
Which of the following is not incorporated in Capital Budgeting?