Financial Management - Study Mode

[#1156] The formula of EBIT = ________
Correct Answer

(B) Contribution - Fixed cost

Explanation

Solution: The formula of EBIT = Contribution - Fixed cost.

[#1157] Investment bankers operate in the______________.
Correct Answer

(A) primary market

Explanation

Solution: Investment bankers operate in the primary market. An investment banker is an individual who often works as part of a financial institution and is primarily concerned with raising capital for corporations, governments, or other entities.

[#1158] Shares having no face value are known as
Correct Answer

(A) no par stock

Explanation

Solution: No par stock means shares having no face value. this is issued in USA, UK and Canada.

[#1159] If a market is inefficient, as new information is received about a security____________.
Correct Answer

(C) there will be a lag in the adjustment of the stock price

Explanation

Solution: If a market is inefficient, as new information is received about a security there will be a lag in the adjustment of the stock price.

[#1160] The bonus issue is permitted to be made out of __________ and premium collected in cash.
Correct Answer

(A) free reserves

Explanation

Solution: The bonus issue is permitted to be made out of free reserves and premium collected in cash. A bonus issue, also known as a scrip issue or a capitalization issue, is an offer of free additional shares to existing shareholders.