According to residual dividend policy, a firm should pay a dividend of all left over when
1.zero NPV projects have been funded
2.positive NPV projects have been funded
3.projects with IRR equal to risk-free interest rate have been funded
4.projects with IRR greater than risk-free interest rate have been funded
Posted Date:-2021-08-18 06:25:27
According to the MM proposition, dividend policy is
1.correlated
2.under-performed
3.relevant
4.irrelevant
Posted Date:-2021-08-18 06:25:27
An investor will receive $5,000 and $10,000 after one and two years from today respectively. If the interest rate during this period is 10% then what is the present value of this cash flow?
1.$12000
2.$12450
3.$12810
4.$13705
Posted Date:-2021-08-18 06:25:27
Companies go public in order to
1.avoid taxes
2.reduce management cost
3.raise more cash
4.get merge
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Companies go public with the help of
1.venture capital firms
2.underwriters
3.shareholders
4.A, B and C
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Financial managers are interested in __________ when see bond market.
1.yield to maturity
2.duration
3.volatility
4.term structure
Posted Date:-2021-08-18 06:25:27
Firms that invest in new companies as they try to grow are called
1.spinning
2.underwriters
3.venture capitalists
4.venture capital firms
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If beta of a stock is __________ then it tends to amplify the overall market movement.
1.0
2.1
3.greater than 1
4.between 0 and 1
Posted Date:-2021-08-18 06:25:27
If stock prices increases, dividend yield
1.also increases
2.decreases
3.remains same
4.increases to one and a half
Posted Date:-2021-08-18 06:25:27
If the daily prices of a stock on 20 and 21 January are 90 and 100 respectively, then what is the daily rate of return?
1.9.90%
2.10.10%
3.11.11%
4.12.12%
Posted Date:-2021-08-18 06:25:27
If two firms at different stages of production merge together, it is called __________ merger.
1.horizontal
2.vertical
3.straight
4.conglomerate
Posted Date:-2021-08-18 06:25:27
If two firms in the same line of business merge together, it is called __________ merger.
1.horizontal
2.vertical
3.straight
4.conglomerate
Posted Date:-2021-08-18 06:25:27
If two firms in unrelated line of business merge together, it is called __________ merger.
1.horizontal
2.vertical
3.straight
4.conglomerate
Posted Date:-2021-08-18 06:25:27
In portfolio analysis __________ curves play an important role.
1.circle
2.ellipse
3.parabola
4.hyperbola
Posted Date:-2021-08-18 06:25:27
In the beginning, some companies receive equity investment from wealthy individuals. The wealthy individuals are called
1.angel investors
2.corporate investors
3.venture capitalists
4.venture capital firms
Posted Date:-2021-08-18 06:25:27
Rights issues are for
1.managers
2.directors
3.existing shareholders
4.new shareholders
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Risk __________ with the duration of bond.
1.remains same
2.increases
3.decreases
4.multiplied
Posted Date:-2021-08-18 06:25:27
Suppose our portfolio consists of two stocks A and B. What should be the correlation between them so that we have no risk in our portfolio?
1.1
2.0
3.1
4.risk cannot be eliminated
Posted Date:-2021-08-18 06:25:27
The difference between the public-offer price and the price paid by the underwriter is called
1.underpricing
2.spread
3.commission
4.margin
Posted Date:-2021-08-18 06:25:27
The measure for calculating how much two random variable change together is called
1.variance
2.covariance
3.skewness
4.kurtosis
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The normalized version of covariance is called
1.regression
2.correlation
3.cross-section
4.spread
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The relationship between short and long term interest rates is called __________ of interest rates.
1.yield to maturity
2.duration
3.volatility
4.term structure
Posted Date:-2021-08-18 06:25:27
The success of a new company critically depends on
1.managers
2.board of directors
3.shareholders
4.venture capitalists
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The underwriters receive their payments in the shape of
1.underpricing
2.spread
3.commission
4.margin
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The value of correlation is always between __________ (inclusive).
1.1 and 0
2.0 and 1
3.1 and 1
4.none of these
Posted Date:-2021-08-18 06:25:27
The value of probability is always between __________ (inclusive).
1.1 and 0
2.0 and 1
3.1 and 1
4.none of these
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Underwriters are also called
1.bookrunner
2.venture capitalists
3.subscribers
4.angel investors
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What is the real rate of interest if nominal rate is 10% and inflation rate is 5%?
1.4.30%
2.4.80%
3.5.30%
4.5.80%
Posted Date:-2021-08-18 06:25:27
What is volatility if the duration of a bond is 4 years and yield to maturity is 8%?
1.3.10%
2.3.40%
3.3.70%
4.4.00%
Posted Date:-2021-08-18 06:25:27
Which from the following is not the role of an underwriter?
1.They provide procedural and financial advice
2.They buy the issue
3.They resell the issue to the public
4.They provide funds to the corporation
Posted Date:-2021-08-18 06:25:27