Financial Management

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QUESTION 1. A portfolio having two risky securities can be turned risk less if
The securities are completely positively correlated
If the correlation ranges between zero and one
The securities are completely negatively correlated
None of the above.
QUESTION 2. “If the Present Value of Cash Inflows are greater than the Present Value of Cash Outflows, the project would be”
Accepted
Rejected with condition
Rejected with approval
Rejected

QUESTION 3. “In finance, “”working capital”” means the same thing as”
total assets
fixed assets
current assets
current assets minus current liabilities.

QUESTION 4. “Mr. X takes a loan of Rs 50,000 from HDFC Bank. The rate of interest is 10% per annum. The first installment will be paid at the end of year. Determine the amount of equal annual installments if Mr. X wishes to repay the amount in five installments.”
Rs 19500
Rs 19400
Rs 19310
None of the above
QUESTION 5. The only feasible purpose of financial management is
Wealth Maximization
Sales Maximization
Profit Maximization
Assets maximization

QUESTION 6. “In the _______________, the future value of all cash inflow at the end of time horizon at a particular rate of interest is calculated.”
Risk-free rate
Compounding technique
Discounting technique
Risk Premium

QUESTION 7. “A________would be an example of a principal, while a ______ would be an example of an agent.”
shareholder; manager
manager; owner
accountant; bondholder
shareholder; bondholder

QUESTION 8. “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 earning at the year end?”
“Rs.100,000”
Rs.6.00
Rs.0.50
Rs.6.50

QUESTION 9. Finance Function comprises
Safe custody of funds only
Expenditure of funds only
Procurement of finance only
Procurement & effective use of funds

QUESTION 10. Efficient portfolios can be defined as those portfolios which for a given level of risk provides
Maximum return
Average return
Minimum return
None of the above

QUESTION 11. Financial management process deals with
Investments
Financing decisions
Both a and b
None of the above

QUESTION 12. “If the nominal rate of interest is 10% per annum and there is quarterly compounding, the effective rate of interest will be:”
10% per annum
10.10 per annum
10.25%per annum
10.38% per annum

QUESTION 13. The focal point of financial management in a firm is:

the number and types of products or services provided by the firm.
the minimization of the amount of taxes paid by the firm.
the creation of value for shareholders.
the dollars profits earned by the firm.

QUESTION 14. The long-run objective of financial management is to:
Maximize earnings per share.
Maximize the value of the firm’s common stock.
Maximize return on investment.
Maximize market share.

QUESTION 15. Financial management mainly focuses on
Efficient management of every business
Brand dimension
Arrangement of funds
All elements of acquiring and using means of financial resources for financial activities

QUESTION 16. Finance functions are
Planning for funds
Raising of funds
Allocation of Resources
All of the above
QUESTION 17. Time value of money supports the comparison of cash flows recorded at different time period by
Discounting all cash flows to a common point of time
Compounding all cash flows to a common point of time
Using either a or b
None of the above.

QUESTION 18. Time value of money indicates that
A unit of money obtained today is worth more than a unit of money obtained in future
A unit of money obtained today is worth less than a unit of money obtained in future
There is no difference in the value of money obtained today and tomorrow
None of the above

QUESTION 19. The objective of wealth maximization takes into account
Amount of returns expected
Timing of anticipated returns
Risk associated with uncertainty of returns
All of the above
QUESTION 20. “Required rate of return>Coupon rate, the bond will be valued at”
Premium
Par value
Discount
None of the above.

We Also Provide SYNOPSIS AND PROJECT.
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Email: amitymbaassignment@gmail.com
Call: +91 82907-72200 (Call/WhatsApp) or +91 88003-52777 (WhatsApp Only)

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