Top 150+ Solved Strategic Financial Management MCQ Questions Answer
Q. IGR stands for….
a. Interest growth rate
b. Internal gearing rate
c. Internal growth rate
d. None of the above
Q. SGR stands for
a. Sustainable growth rate
b. Statutory growth rate
c. Stable growth rate
d. Suitable growth rate
Q. Financial leverage indicates disproportionate change in taxable income as a result of change in……
a. Operating income
b. Operating leverage
c. Interest
d. Tax
Q. The term trading on equity is generally used for …. .…financial leverage
a. Unfavourable
b. Moderate
c. Less than 1
d. Favourable
Q. MOS stands for ….
a. Marginal own source
b. Money of seller
c. Margin of safety
d. Medium own source
Q. The ideal situation is to have high financial leverage and low operating leverage.
a. False
b. True
c. none
d. all
Q. Composite leverage explains change in taxable income on account of change in sales
a. True
b. False
c. none
d. all
Q. Dividend on preference share capital is ignored while calculating operating leverage.
a. True
b. False
c. none
d. all
Q. ………. on capital is called cost of capital.
a. Minimum expected return
b. Normally expected return
c. Higher expected return
d. None of these
Q. Which among the following method is based on time value of money?
a. Pay-back period
b. Post pay-back profitability
c. Discounted cash flow method
d. ARR method
Q. Under net present value criteria, a project is approved if ……
a. NPV is positive
b. The funds are unlimited
c. Both A & B
d. None of these
Q. The return available from the project after the pay-back period is not considered in the case of ……
a. Net present value
b. Profitability index
c. Internal rate of return
d. Pay-back period method
Q. Internal rate of return and net present value are synonymous terms.
a. True
b. False
c. none
d. all