Financial Management - Study Mode
[#401] Net income and depreciation is Rs 313,650,000 and common shares outstanding are 55,000,000 then cash flow per share would be
Correct Answer
(A) Rs 5.70
Explanation
Solution: Cash Flow per Share = Net Income / Shares Outstanding = 313650000 / 55000000 = Rs. 5.70
[#402] Finance company providing loans at 3% with five compounding periods per year, nominal annual rate is classified as
Correct Answer
(A) 15.00%
Explanation
Solution: Finance company providing loans at 3% with five compounding periods per year, nominal annual rate is classified as 15.00% i.e, 3% × 5 = 15.00%.
[#403] Values of assets purchased or liabilities recorded as recorded by bookkeepers are considered as
Correct Answer
(D) book values
Explanation
Solution: Values of assets purchased or liabilities recorded as recorded by bookkeepers are considered as book values. Book value is also the net asset value of a company calculated as total assets minus intangible assets (patents, goodwill) and liabilities.
[#404] A stock which is hybrid and works as a cross between debt and common stock is considered as
Correct Answer
(D) preferred stock
Explanation
Solution: A stock which is hybrid and works as a cross between debt and common stock is considered as preferred stock. Preferred stockholders have a higher claim to dividends or asset distribution than common stockholders.
[#405] Paid dividends to common stockholders Rs 67,600,000 and common shares outstanding 55,000,000 then dividend per share will be
Correct Answer
(A) Rs 1.23
Explanation
Solution: Dividend per Share = Dividend Paid / Shares Outstanding = 67600000 / 5500000 = Rs. 1.23