Financial Management - Study Mode

[#901] Collection of net income, amortization and depreciation is divided by common shares outstanding to calculate
Correct Answer

(B) cash flow per share

Explanation

Solution: Collection of net income, amortization and depreciation is divided by common shares outstanding to calculate cash flow per share. Cash flow per share can be calculated by dividing cash flow earned in a given reporting period (usually quarterly or annually) by the total number of shares outstanding during the same term. Because the number of shares outstanding can fluctuate, a weighted average is typically used.

[#902] In a statement of cash flows, a company investing in short-term financial investments and in fixed assets results in
Correct Answer

(B) decreased cash

Explanation

Solution: In a statement of cash flows, a company investing in short-term financial investments and in fixed assets results in decreased cash.

[#903] Future value of annuity FVA(ordinary) is, if deposited value is Rs 100 and earn 5% every year of total three years will be
Correct Answer

(A) Rs 315.25

[#904] Total common equity divided by common shares outstanding which is used to calculate
Correct Answer

(A) book value of share

Explanation

Solution: Total common equity divided by common shares outstanding which is used to calculate book value of share. The book value per share formula is used to calculate the per share value of a company based on its equity available to common shareholders.

[#905] Prices of bonds will be increased if interest rates
Correct Answer

(D) declines

Explanation

Solution: Prices of bonds will be increased if interest rates declines. Bond price is the present discounted value of future cash stream generated by a bond. It refers to the sum of the present values of all likely coupon payments plus the present value of the par value at maturity.