Financial Management And Financial Markets

OVERVIEW OF FINANCIAL MANAGEMENT MCQs

Total Questions : 124

Page 1 of 13 pages
Question 1. A technique that is used in comparative analysis of financial statement is
  1.    graphical analysis
  2.    preference analysis
  3.    common size analysis
  4.    returning analysis
 Discuss Question
Answer is Option C. -> common size analysis
Answer: (c).common size analysis
Question 2. The price per share is $25 and the cash flow per share is $6 then the price to cash flow ratio would be
  1.    0.24 times
  2.    4.16 times
  3.    0.0416
  4.    0.24
 Discuss Question
Answer is Option B. -> 4.16 times
Answer: (b).4.16 times
Question 3. The low price for earnings ratio is the result of
  1.    low riskier firms
  2.    high riskier firms
  3.    low dividends paid
  4.    high marginal rate
 Discuss Question
Answer is Option A. -> low riskier firms
Answer: (a).low riskier firms
Question 4. The price per share is $30 and earnings per share is $3.5 then price for earnings ratio would be
  1.    8.57 times
  2.    0.0857
  3.    0.11 times
  4.    0.11
 Discuss Question
Answer is Option A. -> 8.57 times
Answer: (a).8.57 times
Question 5. The net income available to stockholders is $125 and total assets are $1,096 then return on common equity would be
  1.    0.00114
  2.    0.114
  3.    0.12 times
  4.    0.12
 Discuss Question
Answer is Option B. -> 0.114
Answer: (b).0.114
Question 6. The partners who are only liable for their own part of investment are considered as
  1.    venture partners
  2.    corporate partners
  3.    limited partners
  4.    general partners
 Discuss Question
Answer is Option C. -> limited partners
Answer: (c).limited partners
Question 7. The legal entity separation from its legal owners and managers with the help of state laws is classified as
  1.    controlled corporate business
  2.    corporation
  3.    limited corporate business
  4.    unlimited corporate business
 Discuss Question
Answer is Option B. -> corporation
Answer: (b).corporation
Question 8. The process of selling company stock at large to the general public and get lending from banks is classified as an
  1.    initial public offering
  2.    external public offering
  3.    internal public offering
  4.    unprofessional offering
 Discuss Question
Answer is Option A. -> initial public offering
Answer: (a).initial public offering
Question 9. The sales revenue $90,000, operating taxes $30,000 and operating capital $15,000 then value of free cash flows (in USD) will be
  1.    45000
  2.    13500
  3.    65000
  4.    75000
 Discuss Question
Answer is Option A. -> 45000
Answer: (a).45000
Question 10. The markets which bring closer the institutions needing funds and with the surplus funds are classified as
  1.    financial markets
  2.    corporate institutions
  3.    hedge firms
  4.    retirement planners
 Discuss Question
Answer is Option A. -> financial markets
Answer: (a).financial markets