Finance MCQs

Page No. 23

Set of rules made by corporation founders such as directors election procedure are classified as_________?


aStock laws


bBy laws


cLiability laws


dCorporate laws


View Answer By laws

Price per share is $30 and an earnings per share is $3.5 then price for earnings ratio would be___________?


a8.57 times


b8.57%


c0.11 times


d11%


View Answer 8.57 times

A technique uses in comparative analysis of financial statement is_________?


aGraphical analysis


bPreference analysis


cCommon size analysis


dReturning analysis


View Answer Common size analysis

Net income available to stockholders is $150 and total assets are $2,100 then return on total assets would be_________?


a0.07%


b7.14%


c0.05 times


d7.15 times


View Answer 7.14%

Return on assets = 5.5%, Total assets $3,000 and common equity $1,050 then return on equity would be_________?


a $22,275


b15.71%


c1.93%


d1.925 times


View Answer 15.71%

High price to earnings ratio shows company’s_________?


aLow dividends paid


bHigh risk prospect


c High growth prospect


dHigh marginal rate



In internal rate of returns, discount rate which forces net present values to become zero is classified as__________?


aPositive rate of return


bNegative rate of return


cExternal rate of return


dInternal rate of return



Set of projects or set of investments usually maximize firm value is classified as_________?


aOptimal capital budget


b Minimum capital budget


cMaximum capital budget


dGreater capital budget



Modified rate of return and modified internal rate of return with exceed cost of capital if net present value is____________?


aPositive


bNegative


cZero


dOne


View Answer Positive

In capital budgeting, a negative net present value result in______________?


aZero economic value added


b Percent economic value added


c Negative economic value added


dPositive economic value added



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