Financial management mcqs with answers sem 5

T.Y B.COM

SEMESTER - 5

FINANCIAL MANAGEMENT

(FM)

MCQs - OCTOBER 2015

(1) What is ignored in principle of Profit Maximization? 

(a) Risk

(b) Wealth creation

(c) Time value of money 

(d) All of the above

(2) Wealth maximization means the maximization of ___________ of investment in assets. 

(a) Profit

(b) Growth

(c) Net Present Value 

(d) None of these

(3) Which of the following is a concept of financial management? 

(a) Debit and Credit 

(b) Receipts and Payment 

(c) Value

(d) All of these

(4) Which of the following represents the financing decision?

(a) Declaring dividend

(b) Paying Interest on Loans

(c) Designing Optimal Capital Structure

(d) Investment in Long term assets

(5) Which of the following sources of funds has as implicit Cost of Capital? 

(a) Equity Share capital 

(b) Preference Share capital 

(c) Debentures 

(d) Retained Earnings

(6) Which of the following is a non discounting technique for appraising a project?

(a) Internal Rate of Return

(b) Payback method

(c) Net Present Value

(d) Profitability Index method

(7) A company issued 10,000: 10% preference shares of Rs. 100 each, The cost of issue is Rs. 2 per share. Calculate cost of preference shares if they are issued at par and redeemable alter 10 years at 10% premium.

(a) 10.77%

(b) 10.30%

(c) 9.59%

(d) 5.51%

(8) A series of percentage of different items of different years is compared on the basis of base year in:

(a) Comparative financial statements

(b) Common size

(c) Trend ratio

(d) None of the above

(9) Current ratio 2.5:1 Net Working Capital is Rs.6,00,000. Find the amount of Current assets.

(a) Rs. 4,00,000 

(b) Rs. 10,00,000 

(c) Rs. 15,00,000 

(d) Rs. 5,00,000

(10) Which group of ratio measures, how effectively a firm is using its assets?

(a) Liquidity ratio

(b) Leverage ratio

(c) Turnover ratio

(d) Profitability ratio

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