Financial Management MCQ Questions and Solutions with Explanations | Commerce

A. Traditional Approach

B. MM Model

C. Net Income Approach

D. Net Operating Income Approach

A. Cost of Equity Shares

B. Cost of Preference Shares

C. Cost of Debentures

D. Cost of Retained Earnings

A. Net Income Approach

B. Net Operating Income Approach

C. MM Model with Taxes

D. Both A and C

A. the value of the firm depends upon earning power

B. the investors buy shares for capital gain

C. dividend is payable after deciding the retained earnings

D. dividend is a small amount

A. OL will increase

B. FL will increase

C. OL will decrease

D. FL will decrease

A. Real estate

B. Plant & Machinery

C. Stock of good

D. Equity share capital

A. Nominal Rate × Inflation Rate

B. Nominal Rate ÷ Inflation Rate

C. Nominal Rate - Inflation Rate

D. Nominal Rate + Inflation Rate

A. Market Price is equal to Book Value of share

B. Shareholders are ready to subscribe to right issue

C. Market Price is more than Issue Price

D. AC of the three above

A. Dividend Payout Ratio

B. Current EPS

C. Speed of Adjustment

D. Preceding year EPS

A. That shares have lesser degree of risk

B. That market is over valuing the shares

C. That the company is high dividend paying

D. That market is undervaluing the share