Finance Management & Corporate Finance Quiz Set 6

1. "Shareholder wealth" in a firm is represented by?

Correct! Wrong!

2. The long-run objective of financial management is to?

Correct! Wrong!

3. What are the earnings per share (EPS) for a company that earned Rs. 100,000 last year in after-tax profits, has 200,000 common shares outstanding and Rs. 1.2 million in retained earnings at the year end?

Correct! Wrong!

4. Would be an example of a principal, while a(n) would be an example of an agent?

Correct! Wrong!

5. The market price of a share of common stock is determined by:

Correct! Wrong!

6. The focal point of financial management in a firm is?

Correct! Wrong!

7. ___________________ of a firm refers to the composition of its long-term funds and its capital structure?

Correct! Wrong!

8. In the _______________, the future value of all cash inflow at the end of time horizon at a particular rate of interest is calculated?

Correct! Wrong!

9. ______________ is the price at which the bond is traded in the stock exchange?

Correct! Wrong!

10. _____________ enhance the market value of shares and therefore equity capital is not free of cost?

Correct! Wrong!

11. In _______________ approach, the capital structure decision is relevant to the valuation of the firm?

Correct! Wrong!

12. When __________ is greater than zero the project should be accepted?

Correct! Wrong!

13. ____________ is defined as the length of time required to recover the initial cash out-lay?

Correct! Wrong!

14. _______________ refers to the amount invested in various components of current assets?

Correct! Wrong!

15. ____________ is the length of time between the firm’s actual cash expenditure and its own cash receipt?

Correct! Wrong!

16. _______________ refers to a firm holding some cash to meet its routine expenses that are incurred in the ordinary course of business?

Correct! Wrong!

17. _______________ refers to the length of time allowed by a firm for its customers to make payment for their purchases?

Correct! Wrong!

18. Amounts due from customers when goods are sold on credit are called _____________?

Correct! Wrong!

19. ____________________ and __________________________ are the two versions of goals of the financial management of the firm.

Correct! Wrong!

20. Consider the below mentioned statements, State True or False: 1) A company is considered to be over-capitalised when its actual capitalisation is lower than the proper capitalisation as warranted by the earning capacity. 2) Both over-capitalisation and under-capitalisation are detrimental to the interests of the society.

Correct! Wrong!

Finance Management & Corporate Finance Quiz Set 6
Below 12 is not good, 13-16 need some improvement, 16+ excellent

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