Financial Management MCQ Questions and Solutions with Explanations | Commerce

A. the risk associated with movements in security prices

B. reduced through diversification

C. higher when interest rates rise

D. the risk of loss of purchasing power

A. Public issue

B. Right Issue

C. Private placement

D. Bought-Out-Deal

A. the expected dividend payments

B. the anticipated capital gains

C. the sum of expected dividends and capital gains

D. less than the realized return

A. Equity shares

B. Preference shares

C. Commercial papers

D. Reserves and surplus

A. the expected return is smaller

B. the standard deviation is smaller

C. the stock's price is higher

D. the security's risk is higher

A. Operating Income

B. Operating Profit

C. Earnings before interest and tax

D. All of the above

A. specialists

B. registered representatives

C. security analysts

D. portfolio managers

A. Bargaining power with the suppliers

B. Demand for the product of the company

C. Technology adopted

D. Adequate of the assets to meet any sudden spurt in demand

A. registered representatives

B. security analysts

C. investment bankers

D. portfolio managers

A. Net profit margin

B. Earning power

C. Earnings per share

D. Capitalization rate