Financial Management - Practice Test

[#626] In Traditional Approach, which one is correct?

(A) k c rises constantly

(B) k d decreases constantly

(C) k 0 decreases constantly

(D) None of the above

Correct Answer

(D) None of the above

[#627] Which of the following is true?

(A) Under Traditional Approach, overall cost of capital remains same

(B) Under NI Approach, overall cost of capital remains same

(C) Under NOI Approach, overall cost of capital remains same

(D) None of the above

(E) Retained earnings are cost free

(F) External Equity is cheaper than Internal Equity

(G) Retained Earnings are cheaper than External Equity

(H) Retained Earnings are costlier than External Equity

Correct Answer

(C) Under NOI Approach, overall cost of capital remains same
(G) Retained Earnings are cheaper than External Equity

[#628] If there is no inflation during a period, then the Money Cashflow would be equal to:

(A) Present Value

(B) Real Cash flow

(C) Real Cash flow + Present Value

(D) Real Cash flow - Present Value

Correct Answer

(B) Real Cash flow

[#629] Marketable securities are primarily:

(A) Equity shares

(B) Preference shares

(C) Fixed deposits with companies

(D) Short-term debt investments

Correct Answer

(D) Short-term debt investments

[#630] Which of the following is not a benefit of carrying inventories?

(A) Reduction in ordering cost

(B) Avoiding lost sales

(C) Reducing carrying cost

(D) Avoiding production shortages

Correct Answer

(C) Reducing carrying cost

Financial Management - Study Mode

[#626] In Traditional Approach, which one is correct?

Correct Answer

[#627] Which of the following is true?

Correct Answer

[#628] If there is no inflation during a period, then the Money Cashflow would be equal to:

Correct Answer

[#629] Marketable securities are primarily:

Correct Answer

[#630] Which of the following is not a benefit of carrying inventories?

Correct Answer