Top 150+ Solved Strategic Financial Management MCQ Questions Answer

From 91 to 105 of 144

Q. A ---------- lease is a way of providing finance

a. Leveraged

b. Operating

c. Finance

d. Sale and lease back

  • c. Finance

Q. MVA stands for….

a. Maximum value added

b. Minimum value added

c. Market value added

d. Most value added

  • c. Market value added

Q. A firm that acquires another firm as part of its strategy to sell off assets, cut costs, and operate theremaining assets more efficiently is engaging in __________.

a. Strategic acquisition

b. Two tier tender offer

c. A financial acquisition

d. Shark repellent

  • a. Strategic acquisition

Q. The ways in which mergers and acquisitions occur do not include:

a. Conglomerate takeover

b. Vertical integration

c. Diversification

d. Horizontal integration

  • c. Diversification

Q. Which among the following does not consider time value of money?

a. NPV

b. Payback period

c. IRR

d. Discounted payback period

  • b. Payback period

Q. How do we calculate economic value added (EVA)?

a. EVA= NOPAT – (WAAC x Capital invested)

b. EVA = NOI- Cost of capital

c. EVA = EPS x WACC

d. EVA= PER x WACC

  • a. EVA= NOPAT – (WAAC x Capital invested)

Q. Retained earnings is…….

a. An Indication of a company’s liquidity

b. The same as cash in the bank

c. Not important when determining dividends

d. The cumulative earnings of the company after dividends

  • d. The cumulative earnings of the company after dividends

Q. Economic value added indicates….

a. Value added to economy

b. Financial performance based on residual wealth

c. Net profit

d. Expected amount of dividend

  • b. Financial performance based on residual wealth

Q. Combination of two or more organisations in the same industry is called…..

a. Horizontal merge

b. Vertical merger

c. Concentric

d. Conglomerate

  • a. Horizontal merge

Q. ………is the combination of two or more organisation in a related industry but do not offer sameproduct.

a. Horizontal

b. Vertical

c. Concentric

d. Conglomerate

  • c. Concentric

Q. The positive incremental net gain associated with two firms enter into a merger is called ……

a. Goodwill

b. Merger cost

c. Consolidation effect

d. Synergy

  • d. Synergy
Subscribe Now

Get All Updates & News