Finance Management & Corporate Finance Quiz Set 4

1. The only feasible purpose of financial management is?

Correct! Wrong!

2. Financial management process deals with?

Correct! Wrong!

3. Agency cost consists of?

Correct! Wrong!

4. Finance Function comprises?

Correct! Wrong!

5. The objective of wealth maximization takes into account?

Correct! Wrong!

6. Financial management mainly focuses on?

Correct! Wrong!

7. Time value of money indicates that?

Correct! Wrong!

8. Time value of money supports the comparison of cash flows recorded at different time period by?

Correct! Wrong!

9. If the nominal rate of interest is 10% per annum and there is quarterly compounding, the effective rate of interest will be?

Correct! Wrong!

10. Relationship between annual nominal rate of interest and annual effective rate of interest, if frequency of compounding is greater than one?

Correct! Wrong!

11. Mr. X takes a loan of Rs 50,000 from IBIBI Bank. The rate of interest is 10% per annum. The first installment will be paid at the end of year 5. Determine the amount of equal annual installments if Mr. X wishes to repay the amount in five installments?

Correct! Wrong!

12. If nominal rate of return is 10% per annum and annual effective rate of interest is 10.25% per annum, determine the frequency of compounding:

Correct! Wrong!

13. Heterogeneous cash flows can be made comparable by?

Correct! Wrong!

14. Risk of two securities with different expected return can be compared with:

Correct! Wrong!

15. Capital market line is?

Correct! Wrong!

16. CAPM accounts for?

Correct! Wrong!

17. Which statement is prepared in the process of funds flow analysis?

Correct! Wrong!

18. Funds Flow Statement is prepared on the basis of data of P&L statement and two consecutive balance sheets?

Correct! Wrong!

19. Which of the following rules stands true while preparation of Schedule of changes in working capital? A) An increase in current assets increases working capital B) An increase in current assets decreases working capital C) An increase in current liabilities decreases working capital D) An increase in current liabilities increases working capital

Correct! Wrong!

20. Funds Flow Statement is also known as?

Correct! Wrong!

Finance Management & Corporate Finance Quiz Set 4
Below 12 is not good, 13-16 need some improvement, 16+ excellent

Leave a Reply

error: Content is protected !!
%d bloggers like this: