Financial Management - Practice Test

[#426] An expected final stock price is Rs 70 and an expected capital gain is Rs 25 then an original investment would be

(A) Rs 45.00

(B) -Rs 45.00

(C) Rs 95.00

(D) -Rs 95.00

Correct Answer

(A) Rs 45.00

Explanation

Solution: Original investment = Expected final stock price - Expected capital gain = Rs. 70 - Rs. 25 = Rs. 45.00

[#427] Business risk can be measured by:

(A) Financial leverage

(B) Operating leverage

(C) Combined leverage

(D) None of the above

Correct Answer

(B) Operating leverage

[#428] Between two capital plans, if expected EBIT is more than indifference level of EBIT, then:

(A) Both plans be rejected

(B) Both plans are good

(C) One is better than other

(D) None of the above

Correct Answer

(C) One is better than other

[#429] Ageing schedule incorporates the relationship between:

(A) Creditors and Days Outstanding

(B) Debtors and Days Outstanding

(C) Average Age of Directors

(D) Average Age of All Employees

Correct Answer

(B) Debtors and Days Outstanding

[#430] EOQ determines the order size when:

(A) Total Order Cost is Minimum

(B) Total Number of Order is least

(C) Total Inventory Cost is minimum

(D) None of the above

Correct Answer

(C) Total Inventory Cost is minimum

Financial Management - Study Mode

[#426] An expected final stock price is Rs 70 and an expected capital gain is Rs 25 then an original investment would be

Correct Answer

Explanation

[#427] Business risk can be measured by:

Correct Answer

[#428] Between two capital plans, if expected EBIT is more than indifference level of EBIT, then:

Correct Answer

[#429] Ageing schedule incorporates the relationship between:

Correct Answer

[#430] EOQ determines the order size when:

Correct Answer