Top 550+ Solved Financial Management MCQ Questions Answer
Q. All business need to have which fundamental essential element
a. human resources
b. balance sheet
c. labour team
d. stategy
Q. Which of the following variable is not known in IRR?
a. discount rate
b. terminal inflows
c. life of the project
d. intitial cash flows
Q. Acccording to the traditional approach what is the effect of increase in degree of leverage on the valuation of the firm
a. remains unaffected
b. increase first and then decreases
c. decreases
d. increases
Q. The maximum expenses that an equity scheme charge to an investor is ____________
a. 0.025
b. 0.0225
c. 0.0175
d. 0.02
Q. The bonds with shorter maturity will have ______ duration
a. moderate
b. higher
c. lower
d. average
Q. Relaxed or libral credit implies -credit to customers
a. higher
b. both a and b
c. lower
d. neither a nor b
Q. Objectives of financial planning are
a. determining capital structure
b. framing loan policies
c. determining cash requirement
d. determining finance ratio
Q. PI of project is the ratio of present value of inflows to-
a. total outflows
b. initial cost
c. pv of outflows
d. total cash inflows
Q. Bird in hand - argument is given by
a. residuals theory
b. walter model
c. mm model
d. gordon\s model
Q. When the required rate of return is less than the coupon rate the premium on the bond-
a. remains same
b. variable
c. declines
d. increases
Q. Evaluation of firms credit policy can be done by computing expected ___________ from it
a. net benefit
b. net loss
c. net profit
d. net cost
Q. All listed and traded securities are valued at _______
a. book value
b. cost
c. cost+ profit
d. closing market price
Q. Financial manager would not supervise on the following area
a. cost analyst
b. working capital advisor
c. financial accounting and auditing
d. cash flow advisor
Q. In case of risky projects the required rate of return would generally be-
a. neutral
b. lower
c. moderate
d. higher
Q. Residuals theory argues that dividend is as -
a. passive decision
b. irrelevant decision
c. active decision
d. relevant decision