Finance Mcqs

Process of comparing company results with other leading firms is considered as____________?

(A) Comparison

(B) Analysis

(C) Bench marking

(D) Return analysis

Submitted By: Ali Uppal


High price to earning ratio shows company’s_____________?

(A) Low dividends paid

(B) High risk prospect

(C) High growth prospect

(D) High marginal rate

Submitted By: Ali Uppal


Price earning ratio and price by cash flow ratio are classified as___________?

(A) Marginal ratios

(B) Equity ratios

(C) Return ratios

(D) Market value ratios

Submitted By: Ali Uppal


In capital budgeting, term of bond which has great sensitivity to interest rates is______________?

(A) Long-term bonds

(B) Short-term bonds

(C) Internal term bonds

(D) External term bonds

Submitted By: Ali Uppal


An equation in which total assets are multiplied to profit margin is classified as_____________?

(A) Du DuPont equation

(B) Turnover equation

(C) Preference equation

(D) Common equation

Submitted By: Ali Uppal


Ratios which relate firm’s stock to its book value per share, cash flow and earnings are classified as_________?

(A) Return ratios

(B) Market value ratios

(C) Marginal ratios

(D) Equity ratios

Submitted By: Ali Uppal


Cash inflows are revenues of project and are represented by__________?

(A) Hurdle number

(B) Relative number

(C) Negative numbers

(D) Positive numbers

Submitted By: Ali Uppal


Cash flow which starts negative than positive then again positive cash flow is classified as__________?

(A) Normal costs

(B) Non-normal costs

(C) Non-normal cash flow

(D) Normal cash flow

Submitted By: Ali Uppal


If two independent projects having hurdle rate, then both projects should________?

(A) Be accepted

(B) Not be accepted

(C) Have capital acceptance

(D) Have return rate acceptance

Submitted By: Ali Uppal


In estimating value of cash flows, compounded future value is classified as its__________?

(A) Terminal value

(B) Existed value

(C) Quit value

(D) Relative value

Submitted By: Ali Uppal