Financial Management - Study Mode

[#571] _________ is equal to (common shareholders' equity/common shares outstanding).
Correct Answer

(A) book value per share

Explanation

Solution: Book value per share is equal to (common shareholders' equity/common shares outstanding). The term "book value" is a company's assets minus its liabilities and is sometimes referred to as stockholder's equity, owner's equity, shareholder's equity, or simply equity.

[#572] Corner portfolio are calculated where a ___________.
Correct Answer

(C) Security enters or leave

Explanation

Solution: Corner portfolios are portfolios calculated where a security either enters or leave the portfolio.

[#573] The relationship between potential unsystematic risk and reward is given by ___________.
Correct Answer

(A) Excess return to beta ratio

Explanation

Solution: The relationship between potential unsystematic risk and reward is given by excess return to beta ratio. Beta Ratio refers to the efficiency in which a given filter element removes particles of a given size.

[#574] A technique uses in comparative analysis of financial statement is
Correct Answer

(C) common size analysis

Explanation

Solution: A technique uses in comparative analysis of financial statement is common size analysis. Common size, or vertical analysis, is a method of evaluating financial information by expressing each item in a financial statement as a percentage of a base amount for the same time period. A company can use this analysis on its balance sheet or its income statement.

[#575] Net income available to stockholders is Rs 125 and total assets are Rs 1,096 then return on common equity would be
Correct Answer

(B) 11.40%

Explanation

Solution: Net income available to stockholders = 125 Total assets = 1,096 Return on common equity rate shows the net income earned per every rupee invested.It acts as a yardstick of profitability. Return on common equity = (net income - preferential stock)/Average common stock holder's equity No further information is available = (125/1096)×100 = 11.4051 ℅