Financial Management - Study Mode
[#641] Which of the following statement is true if the Net Present Value (NPV) of a positive?
Correct Answer
(A) The IRR must be greater than 0.
Explanation
Solution: The IRR must be greater than 0 is true if the Net Present Value (NPV) of a positive.
[#642] If interest rates rose, you would expect ____________ to also rise.
Correct Answer
(C) liquidity risk
Explanation
Solution: If interest rates rises, you would expect liquidity risk to also rise. Liquidity is the ability of a firm, company, or even an individual to pay its debts without suffering catastrophic losses.
[#643] All of the following influence capital budgeting cash flows EXCEPT.
Correct Answer
(D) method of project financing used
Explanation
Solution: All of the following influence capital budgeting cash flows except method of project financing used. Capital budgeting is the process a business undertakes to evaluate potential major projects or investments.
[#644] Financial management is indispensable in any organization as it helps in______________.
Correct Answer
(D) all the above
Explanation
Solution: Financial management is dispensable in any organization as it helps in taking sound financial decisions, proper use and allocation and improving the profitability of funds.
[#645] Dividend changes are perceived important than the absolute level of dividends because.
Correct Answer
(B) dividend changes are thought to signal future expectations
Explanation
Solution: Dividend changes are perceived important than the absolute level of dividends because dividend changes are thought to signal future expectations.