Financial Management (CBSE-NET (UGC) Management (Paper-II & Paper-III)): Questions 5 - 8 of 14

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Question number: 5

» Financial Management » Corporate Risk Management

Appeared in Year: 2014

Match List-Ⅰ List-Ⅱ▾

Question

Match the items given in the two lists: (June Paper II)
List-Ⅰ List-Ⅱ

(A)

Debt securities without any explicit interest rate

(i)

Floating Rate Bonds

(B)

Company issuing such bonds experiences less financial distress

(ii)

Zero-coupon bonds

(C)

Coupon rate quoted as mark-up on the given rate

(iii)

Income Bonds

Choices

Choice (4) Response
  • (A)
  • (B)
  • (C)
a.
  • (iii)
  • (ii)
  • (i)
b.
  • (i)
  • (iii)
  • (ii)
c.
  • (ii)
  • (iii)
  • (i)
d.
  • (iii)
  • (i)
  • (ii)

Question number: 6

» Financial Management » Pricing Theories » Capital Asset Pricing Model

Appeared in Year: 2014

MCQ▾

Question

For computation of cost of equity, arrange the following measures in the ascending order of accuracy:

  1. Capital Asset Pricing Model

  2. Dividend-Price Ratio

  3. Earning-Price Ratio

  4. Dividend-Price Plus Growth Ratio (June Paper II)

Choices

Choice (4) Response
a.

1→ 3 →2 →4

b.

4→ 1 →3 →2

c.

3→ 2 →4→1

d.

2→ 4 → 1→3

Question number: 7

» Financial Management » Capital Structure Theory and Cost of Capital

Appeared in Year: 2014

MCQ▾

Question

________ is considered as a creative capital which performs economic functions different from other investment vehicles, which primarily serve as the expansion capital. (June Paper II)

Choices

Choice (4) Response
a.

Venture Capital

b.

Fixed Capital

c.

Equity Capital

d.

Share Capital

Question number: 8

» Financial Management » Capital Budgeting Decisions- Risk Analysis

Appeared in Year: 2014

MCQ▾

Question

Indicate the statement which is not correct:

i. Credit risk is loss on account of default of repayment of loan.

ii. Liquidity risk is the risk on account of the mismatches of cash inflow and outflow in a firm.

iii. Basic risk is the risk in a firm owing to the differences in the index to which financial assets and liabilities are tied up.

iv. Forward rate agreement is a contract where a borrower/lender locks the interest rate and protects itself from the loss on account of change in the future interest rate. (June Paper II)

Choices

Choice (4) Response
a.

ii & iii

b.

i and ii

c.

iii & iv

d. None of the above

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