Financial Management MCQ Questions and Solutions with Explanations | Commerce

A. Contribution/EBIT

B. EBT/Contribution

C. Contribution/EAT

D. Contribution/Quantity

A. all financial assets

B. all real assets

C. all financial and real assets

D. all physical assets

A. EBIT to the changes in sales

B. EPS to the changes in EBIT

C. Production to the changes in sales

D. None of the above

A. Commercial banks

B. Investment bank

C. Insurance companies

D. All of the above

A. the firm offers an increasing amount of dividend per share at a given level of price per share

B. the firm has a finite life

C. the cost of capital of the firm is variable

D. equal to current assets plus current liabilities including bank borrowings

A. diversify their portfolios

B. gather all relevant information

C. assess credit risk of borrowers

D. advertise for needed investments

E. all of above

A. Reduces DFL

B. Increases DFL

C. Increases financial risk

D. Both a and b

A. commercial banks

B. investment banks

C. savings banks

D. credit unions

A. Measures financial risk of the firm

B. Is zero at financial break-even point

C. Increases as EBIT increases

D. Both a and b

A. directly contribute to the country's productive capacity

B. indirectly to the country's productive capacity

C. contribute to the country's productive capacity both directly and indirectly

D. do not contribute to the country's productive capacity either directly or indirectly