Financial Management - Study Mode

[#326] If common shares outstanding are 50,000,000 and book value per share is Rs 19.92 then total common equity will be
Correct Answer

(A) Rs 996,000,000.00

Explanation

Solution: Total Equity = Shares outstanding × Book value per share = 50,000,000 × 19.92 = Rs. 996,000,000.00

[#327] An income available for shareholders after deducting expenses and taxes from revenues is classified as
Correct Answer

(A) net income

Explanation

Solution: An income available for shareholders after deducting expenses and taxes from revenues is classified as net income. Net income represents the amount of money remaining after all operating expenses, interest, taxes and preferred stock dividends (but not common stock dividends) have been deducted from a company's total revenue.

[#328] Security present value is Rs 100 and future value is Rs 150 after 10 years and value of 'I = interest rate' will be
Correct Answer

(A) 4.14%

[#329] Price per share is Rs 25 and cash flow per share is Rs 6 then price to cash flow ratio would be
Correct Answer

(B) 4.16 times

Explanation

Solution: Price to cash flow ratio = Price per share ÷ Cash flow per share = Rs. 25 ÷ Rs. 6 = 4.16 times

[#330] Low price for earning ratio is result of
Correct Answer

(A) low risky firms

Explanation

Solution: Low price for earning ratio is result of low risky firms. The price-earnings ratio, also known as P/E ratio, P/E, or PER, is the ratio of a company's share price to the company's earnings per share.