Financial Management Mcqs Archives

Variability for expected returns for projects is classified as___________?

Variability for expected returns for projects is classified as___________?

A. Expected risk
B. Stand-alone risk(Correct)
C. Variable risk
D. Returning risk

Variability for expected returns for projects is classified as___________? Read More »

Method uses for an estimation of cost of equity is classified as___________?

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Method uses for an estimation of cost of equity is classified as___________?

A. Market cash flow
B. Future cash flow method
C. Discounted cash flow method(Correct)
D. Present cash flow method

Method uses for an estimation of cost of equity is classified as___________? Read More »

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In weighted average capital, capital structure weights estimation does not rely on value of__________?

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In weighted average capital, capital structure weights estimation does not rely on value of__________?

A. Investors equity
B. Market value of equity
C. Book value of equity(Correct)
D. Stock equity

In weighted average capital, capital structure weights estimation does not rely on value of__________? Read More »

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Beta which is estimated as regression slope coefficient is classified as___________?

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Beta which is estimated as regression slope coefficient is classified as___________?

A. Historical beta(Correct)
B. Market beta
C. Coefficient beta
D. Riskier beta

Beta which is estimated as regression slope coefficient is classified as___________? Read More »

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Risk free rate is subtracted from expected market return is considered as___________?

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Risk free rate is subtracted from expected market return is considered as___________?

A. Country risk
B. Diversifiable risk
C. Equity risk premium(Correct)
D. Market risk premium

Risk free rate is subtracted from expected market return is considered as___________? Read More »

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Capital budgeting decisions are analyzed with help of weighted average and for this purpose____________?

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Capital budgeting decisions are analyzed with help of weighted average and for this purpose____________?

A. Component cost is used
B. Common stock value is used
C. Cost of capital is used(Correct)
D. Asset valuation is used

Capital budgeting decisions are analyzed with help of weighted average and for this purpose____________? Read More »

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In weighted average cost of capital, capital components are funds that usually offer by____________?

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In weighted average cost of capital, capital components are funds that usually offer by____________?

A. Stock market
B. Investors(Correct)
C. Capitalist
D. Exchange index

In weighted average cost of capital, capital components are funds that usually offer by____________? Read More »

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An interest rate which is paid by firm as soon as it issues debt is classified as pre-tax__________?

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An interest rate which is paid by firm as soon as it issues debt is classified as pre-tax__________?

A. Term structure
B. Market premium
C. Risk premium
D. Cost of debt(Correct)

An interest rate which is paid by firm as soon as it issues debt is classified as pre-tax__________? Read More »

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Forecast by analysts, retention growth model and historical growth rates are methods used for an______________?

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Forecast by analysts, retention growth model and historical growth rates are methods used for an______________?

A. Estimate future growth(Correct)
B. Estimate option future value
C. Estimate option present value
D. Estimate growth ratio

Mcq Added by: Muhammad Atif Khattak

Forecast by analysts, retention growth model and historical growth rates are methods used for an______________? Read More »

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In weighted average cost of capital, rising in interest rate leads to_________________?

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In weighted average cost of capital, rising in interest rate leads to_________________?

A. Increase in cost of debt
B. Increase capital structure
C. Decrease in cost of debt
D. Decrease capital structure

In weighted average cost of capital, rising in interest rate leads to_________________? Read More »

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