IC89 - Management Accounting -23

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Q1.How many routes are there for a company to receive Foreign Direct Investment?
   a) One
   b) Two
   c) Three
   d) Four
 
Q2.Which of the following is correct?
   a) Funds = Working capital = Current assets + Current liabilities
   b) Funds = Working capital = Current assets - Current liabilities
   c) Funds = Working capital = Current assets / Current liabilities
   d) Funds = Working capital = Current assets * Current liabilities
 
Q3.The General Agreement on Tariffs and Trade(GATT) was replaced by whom?
   a) RBI
   b) SEBI
   c) WTO
   d) IRDA
 
Q4._______ means that the worth or value of a rupee received today is different from the worth of a rupee to be received in the future.
   a) Cash management
   b) Capital budgeting
   c) Working capital management
   d) Time value of money
 
Q5.Government securities generally have a maturity period ranging from _____.
   a) 1-45 years
   b) 2-35 years
   c) 3-30 years
   d) 4-50 years
 
Q6.Considering that shares of White and Green Ltd. are quoted at a P / E ratio of 7.5 times and retained earnings per share being 40% is Rs. 4 per share, If the Cost of equity of the company when investors expect an annual growth rate of 10% Compute the following: a) Market price with the cost of capital of 18% and anticipated growth rate of 15%.
   a) Rs.100
   b) Rs.150
   c) Rs.180
   d) Rs.220
 
Q7.The financial market is for short-term financial claims is termed as_____.
   a) Capital market
   b) Money market
   c) Equity market
   d) Debt market
 
Q8.Which of the following formulas is correct?
   a) (Return on portfolio + Expected return) / beta
   b) (Return on portfolio - Expected return) / and
  c) (Return on portfolio + Expected return) /
   d) (Return on portfolio - Expected return) / and sigma
 
Q9.Which risk arises due to fluctuations in the prices of securities and equity shares traded in the market though the earning power of the corporate sector and the interest rate structure remain more or less unchanged?
   a) Interest rate risk
   b) Financial risk
   c) Default risk
   d) Market risk
 
Q10.___ per share of common stock is the shareholder's equity-total shares minus liabilities and preferred stocks.
   a) Par value
   b) Book value
   c) scrap value
   d) Final value

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