B. Preference analysis
C. Common size analysis(Correct)
D. Returning analysis
A technique uses in comparative analysis of financial statement is_________?
B. Preference analysis
C. Common size analysis(Correct)
D. Returning analysis
Finance Mcqs
B. Preference analysis
C. Common size analysis(Correct)
D. Returning analysis
Net income available to stockholders is $150 and total assets are $2,100 then return on total assets would be_________?
B. 7.14%(Correct)
C. 0.05 times
D. 7.15 times
Return on assets = 5.5%, Total assets $3,000 and common equity $1,050 then return on equity would be_________?
B. 15.71%(Correct)
C. 1.93%
D. 1.925 times
High price to earnings ratio shows company’s_________?
B. High risk prospect
C. High growth prospect(Correct)
D. High marginal rate
In internal rate of returns, discount rate which forces net present values to become zero is classified as__________?
B. Negative rate of return
C. External rate of return
D. Internal rate of return(Correct)
Set of projects or set of investments usually maximize firm value is classified as_________?
B. Minimum capital budget
C. Maximum capital budget
D. Greater capital budget
Modified rate of return and modified internal rate of return with exceed cost of capital if net present value is____________?
Modified rate of return and modified internal rate of return with exceed cost of capital if net present value is____________?
A. Positive
B. Negative
C. Zero
D. One
In capital budgeting, a negative net present value result in______________?
B. Percent economic value added
C. Negative economic value added(Correct)
D. Positive economic value added
Number of years forecasted to recover an original investment is classified as________?
B. Forecasted period
C. Original period
D. Investment period
Process in which managers of company identify projects to add value is classified as__________?
B. Cost budgeting
C. Book value budgeting
D. Equity budgeting