MCQ on Advance Financial Management 3

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Objective Questions and Answers of MBA: MCQ on Advance Financial Management 3

Subject: Objective Questions and Answers of MBA: MCQ on Advance Financial Management 3

Part 3: List for questions and answers of Advanced Financial Management

 

Q1. Financial management mainly focuses on

a) Efficient management of every business 

b) Brand dimension 

c) Arrangement of funds

d) All elements of acquiring and using means of financial resources for financial activities

 

Q2. The point of tangency between risk return indifferences curves and efficient frontier highlights

a) Optimal portfolio

b) Efficient portfolio

c) Sub-optimal portfolio

d) None of the above

 

Q3. A portfolio comprises two securities and the expected return on them is 12% and 16% respectively. Determine return of portfolio if first security constitutes 40% of total portfolio

a) 2.4%

b) 3.4%

c) 14.4%

d) 15.4%

 

Q4. A risk free security has zero variance

a) True

b) False

 

Q5. Return on any financial asset consists of capital yield and current yield

a) True

b) False

 

Q6. There is no difference between the capital market line and security market line as both the terms are same

a) True

b) False

 

Q7. The value of a bond and debenture is

a) Present value of interest payments it gets

b) Present value of contractual payments it gets till maturity

c) Present value of redemption amount

d) None of the above

 

Q8. Required rate of return>Coupon rate, the bond will be valued at

a) Premium

b) Par value

c) Discount

d) None of the above

 

Q9. If the coupon rate is constant, the value of bond when close to maturity will be

a) Issued value

b) Par value

c) Redemption value

d) All of the above

 

Q10. A bond is said to be issued at premium when

a) Coupon rate>Required returns

b) Coupon rate=Required returns

c) Coupon rate

d) None of the above

 

Q11. Value of a bond just depends on the interest payment is offers

a) True

b) False

 

Q12. In a variable growth model, the dividend is believed to grow at a constant pace forever after an initial growth period

a) True

b) False

 

Q13. For a bond YTM is always equal to coupon rate

a) True

b) False

 

Q14. When the concept of ratio is defined in respected to the items shown in the financial statements, it is termed as

a) Accounting ratio

b) Financial ratio

c) Costing ratio

d) None of the above

 

Q15. The definition, “The term accounting ratio is used to describe significant relationship which exist between figures shown in a balance sheet, in a profit and loss account, in a budgetary control system or in a any part of the accounting organization” is given by

a) Biramn and Dribin

b) Lord Keynes

c) J. Betty

d) None of the above

 

Q16. The relationship between two financial variables can be expressed in

a) Pure ratio

b) Percentage

c) Rate or time

d) Either of the above

 

Q17. Liquidity ratios are expressed in

a) Pure ratio form

b) Percentage

c) Rate or time

d) None of the above

 

Q18. The ratio analysis is helpful to management in taking several decisions, but as a mechanical substitute for judgment and thinking, it is worse than useless

a) True

b) False

 

Q19. Compensation which is calculated as percentage of total revenue generated by sales is classified as

a) organization base pay

b) commission

c) fixed salary

 

Q20. Profit for the objective of calculating a ratio may be taken as

a) Profit before tax but after interest

b) Profit before interest and tax

c) Profit after interest and tax

d) All of the above

 

Part 3: List for questions and answers of Advanced Financial Management

 

Q1. Answer: d

Q2. Answer: a

Q3. Answer: c

Q4. Answer: b

Q5. Answer: a

Q6. Answer: b

Q7. Answer: b

Q8. Answer: c

Q9. Answer: c

Q10. Answer: a

Q11. Answer: b

Q12. Answer: a

Q13. Answer: b

Q14. Answer: a

Q15. Answer: c

Q16. Answer: d

Q17. Answer: a

Q18. Answer: a

Q19. Answer: b

Q20. Answer: d