MCQOPTIONS
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MCQOPTIONS
This section includes 183 Mcqs, each offering curated multiple-choice questions to sharpen your Business knowledge and support exam preparation. Choose a topic below to get started.
| 151. |
Present value of future cash flows is $2000 and an initial cost is $1100 then profitability index will be |
| A. | 0.55 |
| B. | 1.82 |
| C. | 0.55 |
| D. | 0.0182 |
| Answer» C. 0.55 | |
| 152. |
Present value of future cash flows is $4150 and an initial cost is $1300 then profitability index will be |
| A. | 0.0319 |
| B. | 3.19 |
| C. | 0.31 times |
| D. | 5450 |
| Answer» B. 3.19 | |
| 153. |
Present value of portfolio is $1300 and current value of stock in portfolio is $2300 then current option price will be |
| A. | 3600 |
| B. | 1000 |
| C. | 0.0176 |
| D. | 1.76 times |
| Answer» C. 0.0176 | |
| 154. |
Present value of portfolio is $500 and current option price is $1200 then value of stock included in portfolio will be |
| A. | 1700 |
| B. | ?$1700 |
| C. | 700 |
| D. | ?$700 |
| Answer» B. ?$1700 | |
| 155. |
Price per share is $25 and cash flow per share is $6 then price to cash flow ratio would be |
| A. | 0.24 times |
| B. | 4.16 times |
| C. | 0.0416 |
| D. | 0.24 |
| Answer» B. 4.16 times | |
| 156. |
Price per share is $30 and earnings per share is $3.5 then price for earnings ratio would be |
| A. | 8.57 times |
| B. | 0.0857 |
| C. | 0.11 times |
| D. | 0.11 |
| Answer» B. 0.0857 | |
| 157. |
Rate on debt that increases as soon as market rises is classified as |
| A. | Rising bet rate |
| B. | Floating rate debt |
| C. | Market rate debt |
| D. | Stable debt rate |
| Answer» B. Floating rate debt | |
| 158. |
Security present value is $100 and future value is $150 after 10 years and value of I = interest rate will be |
| A. | 0.0414 |
| B. | 0.00586 |
| C. | 0.0069 |
| D. | 0.0079 |
| Answer» B. 0.00586 | |
| 159. |
Set of projects or set of investments to maximize firm value is classified as |
| A. | Optimal capital budget |
| B. | Minimum capital budget |
| C. | Maximum capital budget |
| D. | Greater capital budget |
| Answer» B. Minimum capital budget | |
| 160. |
Stock selling price is $35, expected dividend is $5 and expected growth rate is 8% then cost of common stock would be |
| A. | 40 |
| B. | 0.2229 |
| C. | 0.1428 |
| D. | 80 |
| Answer» C. 0.1428 | |
| 161. |
Stock selling price is $45, an expected dividend is $10 and an expected growth rate is 8% then cost of common stock would be |
| A. | 55 |
| B. | 58 |
| C. | 53 |
| D. | 0.3022 |
| Answer» E. | |
| 162. |
Stock selling price is $65, expected dividend is $20 and cost of common stock is 42% then expected growth rate will be |
| A. | 0.1123 times |
| B. | 0.1123 |
| C. | 11.23 times |
| D. | 11.23 |
| Answer» C. 11.23 times | |
| 163. |
Stockholders that do not get benefits even if companys earnings grow are classified as |
| A. | Preferred stockholders |
| B. | Common stockholders |
| C. | Hybrid stockholders |
| D. | Debt holders |
| Answer» B. Common stockholders | |
| 164. |
Treasury bonds are exposed to additional risks and include |
| A. | Reinvestment risk |
| B. | Interest rate risk |
| C. | Investment risk |
| D. | Both A and B |
| Answer» B. Interest rate risk | |
| 165. |
Total assets divided by common equity is a formula uses for calculating |
| A. | Equity multiplier |
| B. | Graphical multiplier |
| C. | Turnover multiplier |
| D. | Stock multiplier |
| Answer» B. Graphical multiplier | |
| 166. |
Total common equity $996,000,000 and shares outstanding 50,000,000 then book value per share would be |
| A. | 0.05 |
| B. | 15 |
| C. | 19.92 |
| D. | 14 |
| Answer» D. 14 | |
| 167. |
Type of bonds that pay no coupon payment but provide little appreciation are classified as |
| A. | Depreciated bond |
| B. | Interest bond |
| C. | Zero coupon bond |
| D. | Appreciation bond |
| Answer» B. Interest bond | |
| 168. |
Type of financial securities that mature in less than a year are classified as |
| A. | Saving intermediaries |
| B. | Discounted intermediaries |
| C. | Money market securities |
| D. | Capital market securities |
| Answer» B. Discounted intermediaries | |
| 169. |
Type of provision which allows an orderly retirement of an issued bond is classified as |
| A. | Whole call provision |
| B. | Super fund provision |
| C. | Floating fund provision |
| D. | Sinking fund provision |
| Answer» B. Super fund provision | |
| 170. |
Type of financial security in which loans are secured by borrowers property is classified as |
| A. | Municipal bonds |
| B. | Corporate bonds |
| C. | U.S treasury bonds |
| D. | Mortgages |
| Answer» B. Corporate bonds | |
| 171. |
Value of net income is $124,500,000 and common shares outstanding are 60,000,000 then earnings per share will be |
| A. | 2.75 |
| B. | 0.481 |
| C. | 2.075 |
| D. | 2.8 |
| Answer» D. 2.8 | |
| 172. |
Securities with less predictable prices and have longer maturity time is considered as_______________? |
| A. | Cash equivalents |
| B. | Long-term investments |
| C. | Inventories |
| D. | Short-term investments |
| Answer» E. | |
| 173. |
Sum of discounted cash flows is best defined as____________? |
| A. | Technical equity |
| B. | Defined future value |
| C. | Project net present value |
| D. | Equity net present value |
| Answer» D. Equity net present value | |
| 174. |
Term structure premium, an inflation of bond and bond default premium are included in_________________? |
| A. | Risk factors |
| B. | Premium factors |
| C. | Bond buying factors |
| D. | Multi model |
| Answer» B. Premium factors | |
| 175. |
Finance is vital for which of the following business activity (activities)? |
| A. | Marketing Research |
| B. | Product Pricing |
| C. | Design of marketing and distribution channels |
| D. | All of the given options |
| Answer» E. | |
| 176. |
Stock which has higher correlation with market tend to have__________? |
| A. | High beta, less risky |
| B. | Low beta, more risky |
| C. | High beta, more risky |
| D. | Low beta, less risky |
| Answer» D. Low beta, less risky | |
| 177. |
Which of the following is measured by profit margin? |
| A. | Operating efficiency |
| B. | Asset use efficiency |
| C. | Financial policy |
| D. | Dividend policy |
| Answer» B. Asset use efficiency | |
| 178. |
Stocks which has lower book for market ratio are considered as__________? |
| A. | Optimistic |
| B. | More risky |
| C. | Less risky |
| D. | Pessimistic |
| Answer» D. Pessimistic | |
| 179. |
Standard deviation is divided by expected rate of return is used to calculate_________? |
| A. | Coefficient of variation |
| B. | Coefficient of deviation |
| C. | Coefficient of standard |
| D. | Coefficient of return |
| Answer» B. Coefficient of deviation | |
| 180. |
Standard deviation is 18% and expected return is 15.5% then coefficient of variation would be__________? |
| A. | 0.86% |
| B. | 1.16% |
| C. | 2.50% |
| D. | ?2.5% |
| Answer» C. 2.50% | |
| 181. |
Stakeholders include: |
| A. | Stakeholders |
| B. | Creditors and customs |
| C. | Employees and suppliers |
| D. | All of Them |
| Answer» E. | |
| 182. |
A retirement plans funded for workers by corporations, administered and commercial banks are classified as |
| A. | Retirement funds |
| B. | Pension funds |
| C. | Future funds |
| D. | Workers funds |
| Answer» B. Pension funds | |
| 183. |
A formula such as net income available to common stockholders divided by common equity is used to calculate |
| A. | Return on earnings power |
| B. | Return on investment |
| C. | Return on common equity |
| D. | Return on interest |
| Answer» B. Return on investment | |