MCQOPTIONS
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MCQOPTIONS
This section includes 2436 Mcqs, each offering curated multiple-choice questions to sharpen your Commerce knowledge and support exam preparation. Choose a topic below to get started.
| 2251. |
Noncash revenues and noncash charges if it subtracted from net income is equal to |
| A. | free cash flow |
| B. | retained cash flow |
| C. | net cash flow |
| D. | financing cash flow |
| Answer» D. financing cash flow | |
| 2252. |
A techniques uses to identify financial statements trends are included |
| A. | common size analysis |
| B. | percent change analysis |
| C. | returning ratios analysis |
| D. | Both A and B |
| Answer» E. | |
| 2253. |
Price per share divided by earnings per share is formula for calculating |
| A. | price earning ratio |
| B. | earning price ratio |
| C. | pricing ratio |
| D. | earning ratio |
| Answer» B. earning price ratio | |
| 2254. |
For any or lower degree of risk, highest or any expected return are concepts use in |
| A. | risky portfolios |
| B. | behavior portfolios |
| C. | inefficient portfolios |
| D. | efficient portfolios |
| Answer» E. | |
| 2255. |
Call options situation in which strike price is greater than current price of stock is classified as |
| A. | out-of-the-portfolio |
| B. | in-the-portfolio |
| C. | in-the-money |
| D. | out-of-the-money |
| Answer» E. | |
| 2256. |
Complex statistical and mathematical theory is an approach, which is classified as |
| A. | arbitrage pricing theory |
| B. | arbitrage risk theory |
| C. | arbitrage dividend theory |
| D. | arbitrage market theory |
| Answer» B. arbitrage risk theory | |
| 2257. |
If book value is greater than market value comparison with investors for future stock are considered as |
| A. | pessimistic |
| B. | optimistic |
| C. | experienced |
| D. | inexperienced |
| Answer» B. optimistic | |
| 2258. |
Type of options in which buyer of options has call on 200 shares in stock is classified as |
| A. | call option |
| B. | stated option |
| C. | unstated option |
| D. | contractual option |
| Answer» B. stated option | |
| 2259. |
Which of the following methods does a firm resort to avoid dividend payments? |
| A. | Share splitting |
| B. | Declaring bonus shares |
| C. | Rights issue |
| D. | New issue |
| Answer» C. Rights issue | |
| 2260. |
Unsystematic risk is______. |
| A. | the risk associated with movements in security prices |
| B. | reduced through diversification |
| C. | higher when interest rates rise |
| D. | the risk of loss of purchasing power |
| Answer» C. higher when interest rates rise | |
| 2261. |
EBIT means _____________. |
| A. | Operating Income |
| B. | Operating Profit |
| C. | Earnings before interest and tax |
| D. | All of the above |
| Answer» E. | |
| 2262. |
One reason for the declining importance of pension funds is the_______________. |
| A. | decrease in pension benefits for workers |
| B. | downsizing of US companies |
| C. | large number of conversions into self-directed plans |
| D. | increasing number of federal regulations that restrict pension fund portfolios |
| Answer» C. large number of conversions into self-directed plans | |
| 2263. |
A model for optimizing the selection of securities is the ______ model. |
| A. | Miller-Orr |
| B. | Black-Sholes |
| C. | Markowitz |
| D. | Gordon |
| Answer» D. Gordon | |
| 2264. |
One of the statements given below provides evidence for the semi-strongly efficient form. |
| A. | Low P/E ratio effect |
| B. | The size effect |
| C. | Effect on the stock split |
| D. | Weekend effect |
| Answer» D. Weekend effect | |
| 2265. |
Mr. A is a daring portfolio manager. He wants to increase the return in his portfolio. He should choose stocks from_______________. |
| A. | defensive industry |
| B. | industry at a growth stage |
| C. | industry in the maturity period |
| D. | industry with more export potential |
| Answer» C. industry in the maturity period | |
| 2266. |
Corner portfolio are calculated where a ___________. |
| A. | Security enters |
| B. | Security leaves |
| C. | Security enters or leave |
| D. | Security with high extreme value enters |
| Answer» D. Security with high extreme value enters | |
| 2267. |
Which of the following is not a feature of an optimal capital structure? |
| A. | Safety |
| B. | Flexibility |
| C. | Control |
| D. | Solvency |
| Answer» C. Control | |
| 2268. |
While calculating weighted average cost of capital _________. |
| A. | Preference shares are given more weight age |
| B. | Cost of issue is considered |
| C. | Tax factor is ignored |
| D. | Risk factor is ignored |
| Answer» C. Tax factor is ignored | |
| 2269. |
Which of the following is the expression for operating leverage? |
| A. | Contribution/EBIT |
| B. | EBT/Contribution |
| C. | Contribution/EAT |
| D. | Contribution/Quantity |
| Answer» B. EBT/Contribution | |
| 2270. |
Dividend changes are perceived important than the absolute level of dividends because. |
| A. | management change dividends to protect their seats |
| B. | dividend changes are thought to signal future expectations |
| C. | MM state that absolute level of dividends is irrelevant |
| D. | changes determine the level of borrowing |
| Answer» C. MM state that absolute level of dividends is irrelevant | |
| 2271. |
Present value of portfolio is Rs 900 and current value of stock in portfolio is Rs 1500 then current option price would be |
| A. | Rs 2,400.00 |
| B. | -Rs 600.00 |
| C. | -Rs 2,400.00 |
| D. | Rs 600.00 |
| Answer» E. | |
| 2272. |
According to Black Scholes model, selling and buying of stock have |
| A. | discount rate |
| B. | transaction costs |
| C. | no transaction costs |
| D. | no discounts |
| Answer» C. no transaction costs | |
| 2273. |
A usage of proceeds of new issue to retire issue with high-rate is classified as |
| A. | refunding operation |
| B. | funding operation |
| C. | proceeds operation |
| D. | deferred operation |
| Answer» B. funding operation | |
| 2274. |
Types of option markets do not include |
| A. | European option |
| B. | American option |
| C. | expiry option |
| D. | covered options |
| Answer» D. covered options | |
| 2275. |
Current value of stock in portfolio with current option price Rs 20 is Rs 50, then present value of portfolio would be |
| A. | Rs 30.00 |
| B. | Rs 70.00 |
| C. | Rs 40.00 |
| D. | Rs 80.00 |
| Answer» B. Rs 70.00 | |
| 2276. |
Yield of interest rate which is below than coupon rate, this yield is classified as |
| A. | yield to maturity |
| B. | yield to call |
| C. | yield to earning |
| D. | yield to investors |
| Answer» C. yield to earning | |
| 2277. |
Coupon payment of bond which is fixed at time of issuance |
| A. | remains same |
| B. | becomes stable |
| C. | becomes change |
| D. | becomes low |
| Answer» B. becomes stable | |
| 2278. |
Greater value of option, larger span of time value is usually results in |
| A. | shorter call option |
| B. | longer call option |
| C. | longer put option |
| D. | shorter put option |
| Answer» C. longer put option | |
| 2279. |
According to Black Scholes model, rate which is constant and known is classified as |
| A. | short term return rate |
| B. | long term return rate |
| C. | risk free interest rate |
| D. | risky rate of return |
| Answer» D. risky rate of return | |
| 2280. |
Current option is Rs 700 and current value of stock in portfolio is Rs 1400 then present value of portfolio will be |
| A. | -Rs 700.00 |
| B. | Rs 2,100.00 |
| C. | Rs 700.00 |
| D. | Rs 2,000.00 |
| Answer» D. Rs 2,000.00 | |
| 2281. |
In an option pricing, a rises in risk free rate results in option's value |
| A. | slight time decreases |
| B. | slight increases |
| C. | slight decreases |
| D. | slight time increases |
| Answer» C. slight decreases | |
| 2282. |
Current option is Rs 800 and current value of stock in portfolio is Rs 1900 then present value of portfolio would be |
| A. | -Rs 1,100.00 |
| B. | Rs 2,700.00 |
| C. | Rs 1,100.00 |
| D. | -Rs 2,700.00 |
| Answer» D. -Rs 2,700.00 | |
| 2283. |
According to Black Scholes model, short term seller receives today price which |
| A. | short term cash proceeds |
| B. | proceeds in cheques |
| C. | full cash proceeds |
| D. | zero proceeds |
| Answer» D. zero proceeds | |
| 2284. |
Retention ratio is 0.55 and return on equity is 12.5% then growth retention model would be |
| A. | 11.95% |
| B. | 6.88% |
| C. | 13.05% |
| D. | 22.72% |
| Answer» C. 13.05% | |
| 2285. |
In weighted average capital, capital structure weights estimation does not rely on value of |
| A. | investor's equity |
| B. | market value of equity |
| C. | book value of equity |
| D. | stock equity |
| Answer» D. stock equity | |
| 2286. |
Method in which company finds other companies considered in same line of business to evaluate divisions is classified as |
| A. | pure play method |
| B. | same play method |
| C. | division line method |
| D. | single product method |
| Answer» B. same play method | |
| 2287. |
Cost of capital is equal to required return rate on equity in case if investors are only |
| A. | valuation manager |
| B. | common stockholders |
| C. | asset seller |
| D. | equity dealer |
| Answer» C. asset seller | |
| 2288. |
A risk associated with project and way considered by well diversified stockholder is classified as |
| A. | expected risk |
| B. | beta risk |
| C. | industry risk |
| D. | returning risk |
| Answer» C. industry risk | |
| 2289. |
Type of stock which have characteristics of bonds and common stock is classified as |
| A. | bonds equity |
| B. | common shares |
| C. | common stock |
| D. | preferred stock |
| Answer» E. | |
| 2290. |
An amount invested is Rs 2500 and an amount received is Rs 1500 then return will be |
| A. | -Rs 4,000.00 |
| B. | Rs 4,000.00 |
| C. | -Rs 1,000.00 |
| D. | Rs 1,000.00 |
| Answer» D. Rs 1,000.00 | |
| 2291. |
In capital asset pricing model, an amount of risk that stock contributes to portfolio of market is classified as |
| A. | stand-alone coefficient |
| B. | relevant coefficient |
| C. | alpha coefficient |
| D. | beta coefficient |
| Answer» E. | |
| 2292. |
Current price is Rs 40 and dividend paid is Rs 10 then dividend yield will be |
| A. | Rs 25.00 |
| B. | 25.00% |
| C. | Rs 4.00 |
| D. | 4.00% |
| Answer» C. Rs 4.00 | |
| 2293. |
Shares or stocks which are protected against withdrawals of funds by an original stock owners are classified as |
| A. | protected shares |
| B. | founders shares |
| C. | withdrawal shares |
| D. | original shares |
| Answer» C. withdrawal shares | |
| 2294. |
Bonds which are more risky than corporate bonds and are issued by major corporations are classified as |
| A. | common stocks |
| B. | corporate stocks |
| C. | leases |
| D. | preferred stocks |
| Answer» E. | |
| 2295. |
Professionals such as doctors, accountants and lawyers often make corporations are classified as |
| A. | general professionals |
| B. | Professional Corporation |
| C. | professional association |
| D. | Both B and C |
| Answer» E. | |
| 2296. |
Funds which are used as an interest-bearing checking accounts are classified as |
| A. | money market funds |
| B. | capital market funds |
| C. | money mutual funds |
| D. | insurance money funds |
| Answer» B. capital market funds | |
| 2297. |
Loans by finance companies, banks and credit unions is classified as |
| A. | consumer credit loans |
| B. | dollar bonds |
| C. | Eurodollar market deposits |
| D. | euro bonds |
| Answer» B. dollar bonds | |
| 2298. |
Good inventory management is good ________ management. |
| A. | financial |
| B. | Marketing |
| C. | stock |
| D. | purchasing |
| Answer» E. | |
| 2299. |
Book value is_______________. |
| A. | the same as market value |
| B. | a more accurate valuation technique than the dividend models |
| C. | the accounting value of the firm as reflected in the financial statements |
| D. | the same as liquidation value |
| Answer» D. the same as liquidation value | |
| 2300. |
According to the _______ model, the dividend decision is irrelevant. |
| A. | MM |
| B. | Garden |
| C. | Walter |
| D. | XY |
| Answer» B. Garden | |