An effect of interest rate risk and investment risk on a bond’s yield is classified as_________?
A. Reinvestment premium
B. Investment risk premium
C. Maturity risk premium
D. Defaulter’s premium
A. Reinvestment premium
B. Investment risk premium
C. Maturity risk premium
D. Defaulter’s premium
A. Put option
B. Call option
C. Money back options
D. Out of money options
A. Valued relationship
B. Economic relationship
C. Direct relationship
D. Inverse relationship
A. Nominal rate
B. Premium rate
C. Quoted rate
D. Both a and c
A firm has paid out Rs. 150,000 as dividends from its net income of Rs. 250,000. What is the retention ratio for the firm?
A. 12%
B. 25%
C. 40%
D. 60%
Retention ratio = Net income – Dividend / Net income
= 250 – 150 / 250 = 0.4 or 40%
A company having a current ratio of 1 will have __________ net working capital.
A. Positive
B. Negative
C. zero
D. None of the given options
A. Agent bonds
B. Development bonds
C. Pollution control bonds
D. Both B and C