Financial Management Multiple Choice Questions and Answers | Financial Management MCQs

Sports GK Questions and Answers 2024 (Latest Updated)

Awards & Honours GK Questions 2024 (Latest Updated)

Questions
1 Degree of Combined leverage can be obtained by
A EBIT + Fixed Costs/EBIT - Total Interest Expense
B EBT/Sales
C Sales/Contribution x 100
D Sales/Cash x 100

Answer: EBIT + Fixed Costs/EBIT - Total Interest Expense
2 Which is called as Dividend Ratio Method?
A Dividend Yield Method
B Debt Equity Method
C Asset Method
D Equity Method

Answer: Dividend Yield Method
Advertisement
Article and Schedule Quiz Start Test!
DOWNLOAD CURRENT AFFAIRS PDF FROM APP
3 Return on equity ratio is computed as
A Equity/ROA
B Annual Net Income/Average Stock holders Equity
C Debt/Equity
D ROA/Debt x 100

Answer: Annual Net Income/Average Stock holders Equity
4 The relationship between the financial leverage and firm's required rate of return to equity shareholders with corporate taxes is given by the
A YE = Cost/Sales
B YE = r0 + D/E (1 - TC)(r0 - rB)
C YE = Equity/Cost
D YE = Sales/Income

Answer: YE = r0 + D/E (1 - TC)(r0 - rB)
5 Cost of Preference Capital can be obtained by
A KP = E – P/2/D – E/100 (1 - Tax)
B KP = E – P/2/D + 1/100 x 100
C KP = D + 1/2 x 100
D KP = D + (M.V. - N.P./n)/(M.V. + N.P./2)

Answer: KP = D + (M.V. - N.P./n)/(M.V. + N.P./2)
6 Assertion (A) : High capital gearing leads to greater speculation.

Reason (R) : Proportion of equity share capital in relation to the total capital comprising the other securities is small leading to capitalisation being highly geared.

A Both A and R are true and R is the correct explanation of A
B Both A and R are true but R is not a correct explanation of A
C A is true but R is false
D A is false but R is true

Answer: A is false but R is true
7 Capital budgeting actually the process of making investment decisions in
A Sales Planning
B Production process and style
C Fixed Assets
D Current Assets

Answer: Fixed Assets
8 According to the concept of financial signaling, management behavior results in new debt issues being regarded as "____ news" by investors.
A good
B bad
C non-event
D risk-neutral

Answer: good
9 Factoring is a
A Financial Planning
B Production Plan
C Cost of Sales
D New Financial Service

Answer: New Financial Service
10 Degree of operating leverage can be computed by
A % change in Operating Income/% change in sales
B % Sales/% Profit
C Sales/Cost of Production
D Sales/Fixed Cost

Answer: % change in Operating Income/% change in sales

Random GK Questions

Q. The objective of Jawahar Rojgar Yojana is to
Q. The Pacific Ring of Fire is associated with
Q. What is the composition of the Electoral College for the election of Vice-President of India?
Q. The International Monetary Fund (IMF) came into existence with:
Q. Which one of the following is not a function of kidney?
Q. What is Biodiversity?
Assam Direct Recruitment Test Series

Teacher Eligibility Test

Assam Direct Recruitment Test Series