In capital budgeting, term of bond which has great sensitivity to interest rates is______________?

A: Long-term bonds

B: Short-term bonds

C: Internal term bonds

D: External term bonds

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Long-term bonds

Price earning ratio and price by cash flow ratio are classified as___________?

A: Marginal ratios

B: Equity ratios

C: Return ratios

D: Market value ratios

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Market value ratios

High price to earning ratio shows companys_____________?

A: Low dividends paid

B: High risk prospect

C: High growth prospect

D: High marginal rate

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High growth prospect

Process of comparing company results with other leading firms is considered as____________?

A: Comparison

B: Analysis

C: Bench marking

D: Return analysis

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Bench marking

An equity multiplier is multiplied to return on assets to calculate_________?

A: Return on assets

B: Return on multiplier

C: Return on turnover

D: Return on stock

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Return on assets

Company low earning power and high interest cost cause financial changes which have_____________?

A: High return on equity

B: High return on assets

C: Low return on assets

D: Low return on equity

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High return on assets

Projects which are mutually exclusive but different on scale of production or time of completion then the__________________?

A: External return method

B: Net present value of method

C: Net future value method

D: Internal return method

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Net present value of method

A point where profile of net present value crosses horizontal axis at plotted graph indicates project____________________?

A: Costs

B: Cash flows

C: Internal rate of return

D: External rate of return

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Internal rate of return

Profit margin multiply assets turnover multiply equity multiplier is used to calculate____________?

A: Return on turnover

B: Return on stock

C: Return on assets

D: Return on equity

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Return on equity

Payback period in which an expected cash flows are discounted with help of project cost of capital is classified as___________________?

A: Discounted payback period

B: Discounted rate of return

C: Discounted cash flows

D: Discounted project cost

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Discounted payback period

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