Financial Management Multiple Choice Questions and Answers | Financial Management MCQs
Questions
1
Return on assets can be computed by
Answer: Annual Net Income/Average total Assets
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4
Which of the following recognises risk in capital budgeting analysis by adjusting estimated cash flows and employs risk-free rate to discount the adjusted cash flows?
Answer: Certainty Equivalent Approach
5
The term "capital structure" refers to:
Answer: long-term debt, preferred stock, and common stock equity.
6
The ______ method provides correct rankings of mutually exclusive projects, when the firm is not subject to capital rationing.
Answer: net present value
8
Which is Walter formula, for dividend policy?
Answer: Vc = D + Ra/Rc (E - D)/Rc
9
Operating leverage can be computed by
Answer: %change in EBIT/% change in Sales
10
________ is concerned with the maximization of a firm's stock price.
Answer: Shareholder wealth maximization
