Top 150+ Solved Strategic Financial Management MCQ Questions Answer
Q. The abbreviation "SIP" in a mutual fund stands for-----
a. simple investment plan
b. systematic investment plan
c. small investment plan
d. social investment programme
Q. In case of Mutually Exclusive proposals
a. only the best project is selected
b. all projects with positive npv is are selected
c. even negative npv project may be selected
d. at least two proposals are selected
Q. Payback period Technique is based on
a. all cash flows
b. only higher cash flows
c. earlier cash flows
d. selected cash flows
Q. Which of the following method of evaluation of capital budgeting proposals focuses on liquidity?
a. internal rate of return
b. net present value
c. accounting rate of return
d. payback period
Q. Which of the following methods focuses the maximisation of wealth of shareholders?
a. accounting rate of return
b. payback period
c. profitability index
d. internal rate of return
Q. Evaluation of Capital Budgeting Proposals is based on Cash flows because:
a. cash flows are easy to calculate
b. cash flows are suggested by sebi
c. cash is more important than profit
d. cash flows are unable to prepared
Q. Which of the following is not included in incremental A flows?
a. opportunity costs
b. sunk costs
c. change in working capital
d. inflation effect
Q. Savings in respect of a cost is treated in capital budgeting as:
a. an inflow
b. an outflow
c. nil
d. as one
Q. Which of the following is not a risk factor in capital budgeting ?
a. industry specific risk factors
b. competition risk factors
c. project specific risk factors
d. interest risk factors
Q. NPV of a proposal, as calculated by RADR real CE Approach will be:
a. same
b. unequal
c. zero
d. equal
Q. In weighted average cost of capital, rising in interest rate leads to-
a. increase in cost of debt
b. increase the capital structure
c. decrease in cost of debt
d. decrease the capital structure
Q. National Ltd. Has 12,000 equity shares of Rs.100 each. Sale price is equity share Rs.115 per share; flotation cost Rs.5 per share.Expected dividend growth rate is 5% and expected dividend at the end of the financial year is Rs.11 per share, What is the cost of equity shares of National Ltd?
a. 0.1133
b. 0.1278
c. 0.1475
d. 0.15
Q. The term "capital structure" refers to:
a. current assets& current liabilities
b. long-term debt, preferred stock, and common stock equity
c. total assets minus liabilities
d. shareholde rs\ equity
Q. The manner in which an organization's assets are financed is referred to as its-
a. capital structure
b. financial structure
c. asset structure
d. owners structure