Top 150+ Solved Strategic Financial Management MCQ Questions Answer
Q. Which of the following is not applicable to IRR?
a. considers all cash flows
b. based on time value of money
c. common for all projects
d. stated in % return
Q. PQR Ltd. Is a profit-making company. It is absorbed into another group company XYZ Ltd. Which is a loss Company. This case is off
a. hostile takeover bid
b. horizontal merger
c. reverse merger
d. takeover
Q. ABC Ltd. acquires hundred percent of preference share capital of PQR Ltd. It would result in
a. hostile takeover bid
b. vertical merger
c. no relationship
d. holding subsidiary relationshi p
Q. TCs Ltd. acquires HCL Ltd., MPS of HCL Ltd. Is Rs.20 and EPS is Rs. 5 for an exchange ratio of 1.5: 1, what was the PE ratio used in acquiring HCL Ltd.?
a. rs. 4
b. rs. 5
c. rs. 6
d. rs. 2.67
Q. Commercial papers is a type of
a. fixed coupon bond
b. unsecured short term debt
c. equity share capital
d. governmen t bond
Q. Which of the followings is an item of Current Liability?
a. bank balance
b. bank overdraft
c. cash balance
d. unsecured loans
Q. Rights issue is also called as -----
a. privileged subscription.
b. equity shares
c. stock dividend.
d. bonus shares
Q. …… increases the number of shares without actually increasing the paid - up value of the share capital.
a. consolidation of shares.
b. stock split- ups
c. bonus issue
d. rights issue
Q. A merchant banker-------
a. is a bank of merchants and businessmen.
b. provides loan to merchants.
c. accepts deposits from merchants.
d. renders corporate advisory services.
Q. Decision involving purchase of fixed assets are also termed as:
a. capital structure decisions.
b. capital budgeting
c. capital restructurin g
d. capital mix decisions
Q. A Balance Sheet tallies; because:
a. it is based on double entry system of accounting
b. it is based on single entry system of accounting.
c. all accounts are computerise d.
d. total of assets equals to the total of liabilities
Q. Which of the following is a security on a moveable property?
a. pledge
b. mortgage
c. hypothecati on
d. lien
Q. Time value of Money is based on the principle of:
a. a stich in time saves nine
b. a bird in hand; is worth two in a bush.
c. as you sow; so shall you reap.
d. hard work pays in the long run