Financial Management - Practice Test

[#591] Which of the following statements is correct?

(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

Correct Answer

(D) Lower Debt-Equity Ratio means lower Financial Risk

[#592] The Real Cashflows must be discounted to get the present value at a rate equal to:

(A) Money Discount Rate

(B) Inflation Rate

(C) Real Discount Rate

(D) Risk free rate of interest

Correct Answer

(C) Real Discount Rate

[#593] If a firm has no debt, which one is correct?

(A) OL is one

(B) FL is one

(C) OL is zero

(D) FL is zero

Correct Answer

(B) FL is one

[#594] Financial decision involves:

(A) Investment, financing and dividend decision

(B) Investment, financing and sales decision

(C) Financing, dividend and cash decision

(D) None of these

Correct Answer

(A) Investment, financing and dividend decision

[#595] Current price is Rs 40 and dividend paid is Rs 10 then dividend yield will be

(A) Rs 25.00

(B) 25.00%

(C) Rs 4.00

(D) 4.00%

Correct Answer

(B) 25.00%

Explanation

Solution: Dividend yield = Dividend paid / Current price * 100 = 10 / 40 * 100 = 25%

Financial Management - Study Mode

[#591] Which of the following statements is correct?

Correct Answer

[#592] The Real Cashflows must be discounted to get the present value at a rate equal to:

Correct Answer

[#593] If a firm has no debt, which one is correct?

Correct Answer

[#594] Financial decision involves:

Correct Answer

[#595] Current price is Rs 40 and dividend paid is Rs 10 then dividend yield will be

Correct Answer

Explanation