12841. The Capital Asset Pricing Model calculate expected:
✅ B. Risk and Return
Option A : Risk Option B : Risk and Return Option C : Return Option D : None of the above Option E : Correct Answer : Risk and Return Read more
Management Sciences MCQs – Page 643
12842. A technique uses in comparative analysis of financial statement is____________?
✅ C. Common size analysis
Option A : Graphical analysis Option B : Preference analysis Option C : Common size analysis Option D : Returning analysis Option E : Correct Answer : Common size analysis Read more
12843. Net income available to stockholders is $125 and total assets are $1,096 then return on common equity would be________?
✅ B. 11.40%
Option A : 0.11% Option B : 11.40% Option C : 0.12 times Option D : 12% Option E : Correct Answer : 11.40% Read more
12844. Price per share is $30 and an earnings per share is $3.5 then price for earnings ratio would be_____________?
✅ A. 8.57 times
Option A : 8.57 times Option B : 8.57% Option C : 0.11 times Option D : 11% Option E : Correct Answer : 8.57 times Read more
12845. 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?
✅ B. Rs. 1,244
Option A : Rs. 1,000 Option B : Rs. 1,244 Option C : Rs. 1,331 Option D : Rs. 1,464 Option E : Correct Answer : Rs. 1,244 Read more
12846. In case of international business which of the given factor(s) must be considered?
✅ D. All of the given options
Option A : Role of foreign exchange Option B : Balance of payments Option C : Attitude of Governments Option D : All of the given options Option E : Correct Answer : All of the given options Read more
12847. Which of the following refers to the difference between the sale price and cost of inventory?
✅ C. Markup
Option A : Net loss Option B : Net worth Option C : Markup Option D : Markdown Option E : Correct Answer : Markup Read more
12848. Who of the following make a broader use of accounting information?
✅ B. Financial Analysts
Option A : Accountants Option B : Financial Analysts Option C : Auditors Option D : Marketers Option E : Correct Answer : Financial Analysts Read more
12849. The Yield to Maturity of a bond is the same as_____________?
✅ B. The bonds internal rate of return
Option A : The present value of the bond Option B : The bonds internal rate of return Option C : The future value of the bond Option D : None of these Option E : Correct Answer : The bonds internal rate of return Read more
12850. Choose from the following a symptom which is not relating to Over Trading?
✅ B. Low inventory turnover ratio
Option A : Cash shortage Option B : Low inventory turnover ratio Option C : Low current ratio Option D : High inventory turnover ratiO Option E : Correct Answer : Low inventory turnover ratio Read more
12851. The formula to calculate the present value of a single cash flow is given by:
✅ A. CF1 / (1+r)n
Option A : CF1 / (1+r)n Option B : C2 / (1+r) Option C : C0 + C (1+r)n Option D : None of these Option E : Correct Answer : CF1 / (1+r)n Read more
12852. The effect of purchasing power or inflation on present value is important because _________?
✅ B. It reduces the real value of cash flows received in the future
Option A : It increases the real value of cash flows received in the future Option B : It reduces the real value of cash flows received in the future Option C : It has no effect on real value of cash flow received in the future Option D : None of these Option E : Correct Answer : It… Read more
12853. An Asset is __________?
✅ B. Use of funds
Option A : Sources of funds Option B : Use of funds Option C : Inflow of funds Option D : None of these Option E : Correct Answer : Use of funds Read more
12854. If a company revaluates its fixed assets, the current ratio of the company will:
✅ B. Remain unaffected
Option A : Improve if assets are revalued upward Option B : Remain unaffected Option C : Improve if assets are revalued downwards Option D : Undergo change only if liabilities are remaining constant Option E : Correct Answer : Remain unaffected Read more
12855. If we were studying a sample of 100 students and their examination performance and if the standard deviation of the list of results was say 14, then we could calculated the standard error by ___________?
✅ D. We cannot calculate standard error on account of inadequacy of information
Option A : Dividing the square root of the number of items in the sample by the mean Option B : Dividing standard deviation by number of items in the sample Option C : Dividing the standard deviation by the square root of the number of items in the sample Option D : We cannot calculate standard error on account… Read more
12856. Which of the following statement is TRUE regarding debt?
✅
Option A : Debt is an ownership interest in the firm. Option B : Unpaid debt can result in bankruptcy or financial failur Option C : Debt provides the voting rights to the bondholders. Option D : Corporations payment of interest on debt is fully taxable. Option E : Correct Answer : Unpaid debt can result in bankruptcy or financial… Read more
12857. A firm reports total liabilities of Rs. 300,000 and owners equity of Rs. 500,000. What would be the total worth of the firms assets?
✅ C. Rs. 800,000
Option A : Rs. 300,000 Option B : Rs. 500,000 Option C : Rs. 800,000 Option D : Rs. 1100,000 Option E : Correct Answer : Rs. 800,000 Read more
12858. Which of the following measure reveals how much profit a company generates with the money shareholders have invested?
✅ C. Return on Equity
Option A : Profit Margin Option B : Return on Assets Option C : Return on Equity Option D : Debt-Equity Ratio Option E : Correct Answer : Return on Equity Read more
12859. The most important item that can be extracted from financial statements is the actual ________ of the firm.
✅ B. Cash Flow
Option A : Net Working Capital Option B : Cash Flow Option C : Net Present Value Option D : None of the given options Option E : Correct Answer : Cash Flow Read more
12860. 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?
✅ C. 40%
Option A : 12% Option B : 25% Option C : 40% Option D : 60% Option E : Correct Answer : 40% Read more