Financial Management - Study Mode

[#96] Future value of annuity FVA(due) is, if deposited value is Rs 100 and earn 5% every year of total three years will be
Correct Answer

(D) Rs 331.01

[#97] Total common equity Rs 996,000,000 and shares outstanding 50,000,000 then book value per share would be
Correct Answer

(C) Rs 19.92

Explanation

Solution: Book Value per Share = Total common equity / Outstanding shares = 996000000 / 50000000 = Rs. 19.92

[#98] Total amount of depreciation charged on long term assets is classified as
Correct Answer

(A) accumulated depreciation

Explanation

Solution: Total amount of depreciation charged on long term assets is classified as accumulated depreciation. Accumulated depreciation is the total amount of a plant asset's cost that has been allocated to depreciation expense (or to manufacturing overhead) since the asset was put into service.

[#99] rate which is divided by compounding periods to calculate periodic rate must be
Correct Answer

(C) nominal rate

Explanation

Solution: Rate which is divided by compounding periods to calculate periodic rate must be nominal rate. Nominal interest rate refers to the interest rate before taking inflation into account. Nominal can also refer to the advertised or stated interest rate on a loan, without taking into account any fees or compounding of interest.

[#100] In calculation of time, value of money, ''N ''represents
Correct Answer

(A) number of payment periods

Explanation

Solution: In calculation of time, value of money, ''N ''represents number of payment periods.