Finance Management & Corporate Finance Quiz Set 1

1. Which of the following is not one of the three fundamental methods of firm valuation?

Correct! Wrong!

2. What is the value of the firm usually based on?

Correct! Wrong!

3. Which of the following defines the market to book value?

Correct! Wrong!

4. Shareholder’s wealth increases with the increase in ______?

Correct! Wrong!

5. Promotion of welfare of human by corporate is called as_______?

Correct! Wrong!

6. Leasing of machinery can be categorized as______?

Correct! Wrong!

7. A mutually exclusive decision means:

Correct! Wrong!

8. Which of the following has Net profit as basis for calculation?

Correct! Wrong!

9. Internal rate of return is_______?

Correct! Wrong!

10. Corporate wealth maximization is the value maximization for_______?

Correct! Wrong!

11. Book value of assets includes?

Correct! Wrong!

12. Listed companies can be valued at?

Correct! Wrong!

13. Unlisted company can be valued at?

Correct! Wrong!

14. Which of the following valuation methods is based on “Going concern concept”?

Correct! Wrong!

15. A company has a profit attributable to ordinary shareholders of Rs. 100,000. The number of ordinary shares of Rs. 1 in issue during the year was 300,000. The market value of the company’s shares at the yearend was Rs. 6.50. The price/earnings ratio for this company is?

Correct! Wrong!

16. What does the price/earnings (PE) ratio measure?

Correct! Wrong!

17. What does the price-to-earnings ratio (P/E) tell you?

Correct! Wrong!

18. How is the P/E ratio calculated?

Correct! Wrong!

19. What is the most important use of the P/E ratio for investors?

Correct! Wrong!

20. What does a high P/E ratio suggest?

Correct! Wrong!

Finance Management & Corporate Finance Quiz Set 1
Below 12 is not good, 13-16 need some improvement, 16+ excellent

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