A. Preferred stock account
B. Common stock account
C. Due stock account
D. Preceded stock account
A. Interest rate-tax savings
B. Marginal tax-required return
C. Interest rate + tax savings
D. Borrowing cost + embedded cost
A. Long-termed
B. Short-termed
C. Riskier
D. Smaller
Balance Sheet is based upon which of the following formula?
A. Assets = Liabilities – Stockholder’s equity
B. Assets + Liabilities = Stockholder’s equity
C. Assets + Stockholder’s equity = Liabilities
D. Assets = Liabilities + Stockholder’s equity
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).
If you have Rs. 850 and you plan to save it for 4 years with an interest rate of 10%, what will be the future value of your savings?
A. Rs. 1,000
B. Rs. 1,244
C. Rs. 1,331
D. Rs. 1,464
FV = PV * (1+ i) ^n
= 850 * (1+0.1)^4
= 1244