Financial Management - Study Mode
[#566] Set of projects or set of investments usually maximize firm value is classified as
Correct Answer
(A) optimal capital budget
Explanation
Solution: Set of projects or set of investments usually maximize firm value is classified as optimal capital budget. An optimal capital structure is the objectively best mix of debt, preferred stock, and common stock that maximizes a company's market value while minimizing its cost of capital.
[#567] One of the statements given below provides evidence for the semi-strongly efficient form.
Correct Answer
(C) Effect on the stock split
Explanation
Solution: One of the statements given below provides evidence for the semi-strongly efficient form effect on the stock split.
[#568] A growth industry is defined as ____________.
Correct Answer
(D) an industry with average growth higher than the growth of the economy
Explanation
Solution: A growth industry is defined as an industry with average growth higher than the growth of the economy. A growth industry is that sector of an economy which experiences a higher-than-average growth rate as compared to other sectors. Growth industries are often new or pioneer industries that did not exist in the past. Their growth is a result of demand for new products or services offered by companies in the field.
[#569] In BSE shares are divided into_______________.
Correct Answer
(B) three categories
Explanation
Solution: In BSE shares are divided into three categories. Primarily the stocks that are listed in the National Stock Exchange are divided into three different categories on the basis of the market capitalization – large cap, mid cap and the small cap.
[#570] The value of bond depends on ____________.
Correct Answer
(D) all the above
Explanation
Solution: The value of bond depends on the coupon rate, years to maturity and expected yield to maturity.