Financial Management - Study Mode

[#751] Payments if it is made at end of each period such as an end of year is classified as
Correct Answer

(D) Both A and B

Explanation

Solution: Payments if it is made at end of each period such as an end of year is classified as ordinary annuity and deferred annuity.

[#752] In time value of money, nominal rate is
Correct Answer

(A) not shown on timeline

Explanation

Solution: In time value of money, nominal rate is not shown on timeline. The time value of money (TVM) is the concept that money available at the present time is worth more than the identical sum in the future due to its potential earning capacity.

[#753] Value of net income is Rs 124,500,000 and common shares outstanding are Rs 60,000,000 then earning per share will be
Correct Answer

(C) Rs 2.08

Explanation

Solution: EPS = net income / average outstanding common shares. = 124500000 / 60000000 = 2.08

[#754] Corporations such as Citigroup, American Express and Fidelity are classified as
Correct Answer

(A) financial services corporations

Explanation

Solution: Corporations such as Citigroup, American Express and Fidelity are classified as financial services corporations. Financial services are the economic services provided by the finance industry, which encompasses a broad range of businesses that manage money, including credit unions, banks, credit-card companies, insurance companies, accountancy companies, consumer-finance companies, stock brokerages, investment funds, individual managers and some government-sponsored enterprises.

[#755] Financial corporations which serve individual savers and commercial mortgage borrowers are classified as
Correct Answer

(D) savings and loans associations

Explanation

Solution: Financial corporations which serve individual savers and commercial mortgage borrowers are classified as savings and loans associations. Financial services are the economic services provided by the finance industry, which encompasses a broad range of businesses that manage money, including credit unions, banks, credit-card companies, insurance companies, accountancy companies, consumer-finance companies, stock brokerages, investment funds, individual managers and some government-sponsored enterprises.