Financial Management - Study Mode

[#411] Net working capital is the excess of current asset over ____________.
Correct Answer

(A) Current liability

Explanation

Solution: Net working capital is a liquidity calculation that measures a company’s ability to pay off its current liabilities with current assets.

[#412] The coupon rate is another name for the__________.
Correct Answer

(C) stated interest rate

Explanation

Solution: Coupon rate is the rate of interest paid by bond issuers on the bond's face value. It is the periodic rate of interest paid by bond issuers to its purchasers.

[#413] Dividends are paid________________.
Correct Answer

(D) yearly

Explanation

Solution: Dividends are paid yearly. A dividend is a payment made by a corporation to its shareholders, usually as a distribution of profits.

[#414] Long term fund sources are ___________.
Correct Answer

(D) All of the above

Explanation

Solution: Long term fund sources are Retained earnings, Debentures and Share capital. A long/short fund is a type of mutual fund that takes long and short positions in investments typically from a specific market segment.

[#415] If an investor states that Intel is overvalued at 65 times, he is referring to___________.
Correct Answer

(D) P/E ratio

Explanation

Solution: If an investor states that Intel is overvalued at 65 times, he is referring to P/E ratio. The price-to-earnings ratio (P/E ratio) is the ratio for valuing a company that measures its current share price relative to its per-share earnings (EPS). The price-to-earnings ratio is also sometimes known as the price multiple or the earnings multiple.