Finance MCQs

Page No. 10

Number of shares outstanding if it is divided by net income for using to calculate___________?


aEarning per share


bDividends per share


cBook value of share


dMarket value of shares


View Answer Earning per share

Stockholders that do not get benefits even if company’s earnings grow are classified as_____________?


aPreferred stockholders


bCommon stockholders


cHybrid stockholders


dDebt holders



In calculation of net cash flow, depreciation and amortization are treated as________?


aCurrent liabilities


bIncome expenses


cNon-cash revenues


dNon-cash charges


View Answer Non-cash charges

An annual estimated cost of assets uses up every year is included__________?


aDepreciation and amortization


bNet sales


cNet profit


dNet income



In time value of money, nominal rate is_______________?


aNot shown on timeline


bShown on timeline


cMultiplied on timeline


dDivided on timeline


View Answer Not shown on timeline

Proceeds of company shares of sold stock is recorded in___________?


a Preferred stock account


bCommon stock account


cDue stock account


dPreceded stock account


View Answer Common stock account

Standard deviation is 18% and coefficient of variation is 1.5% an expected rate of return will be_____________?


a27%


b12%


c19.50%


dnone of above


View Answer 12%

In an individual stock, relevant risk is classified as___________?


aAlpha coefficient


bBeta coefficient


cStand-alone coefficient


dRelevant coefficient


View Answer Beta coefficient

Weighted average of probabilities is classified as____________?


aAverage rate of return


bExpected rate of return


cPast rate of return


dWeighted rate of return



According to market risk premium, an amount of risk premium depends upon investor______________?


aRisk taking


bRisk aversion


cMarket aversion


dPortfolio aversion


View Answer Risk aversion

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