A. Current liabilities
B. Income expenses
C. Non-cash revenues
D. Non-cash charges
The Yield to Maturity of a bond is the same as_____________?
A. The present value of the bond
B. The bonds internal rate of return
C. The future value of the bond
D. None of these
Which of the following is a special case of annuity, where the stream of cash flows continues forever?
A. Ordinary Annuity
B. Special Annuity
C. Annuity Due
D. Perpetuity
If a company revaluates its fixed assets, the current ratio of the company will:
A. Improve if assets are revalued upward
B. Remain unaffected
C. Improve if assets are revalued downwards
D. Undergo change only if liabilities are remaining constant
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%
Which of the following is measured by profit margin?
A. Operating efficiency
B. Asset use efficiency
C. Financial policy
D. Dividend policy
Profit margin ratio is calculated to determine how efficiently the business is generating cash from operations (below taxes and interest).
A. Standing bonds
B. Outdated bonds
C. Dated bonds
D. Seasoned bonds