A. Dividend Price Model
B. Dividend Growth Model
C. Dividend Policy Model
D. All of the given options
Finance Mcqs
……… refers to the most valuable alternative that is given up if a particular investment is undertaken?
A. Sunk cost
B. Opportunity cost
C. Financing cost
D. All of the given options
The use of Personal borrowing to alter the degree of financial leverage is called……….?
A. Homemade leverage
B. Financial leverage
C. Operating leverage
D. None of the given option
……………refers to the extent to which fixed-income securities (debt and preferred stock) are used in a firm’s capital structure?
A. Financial risk
B. Portfolio risk
C. Operating risk
D. Market risk
Which of the following is the cheapest source of financing available to a firm?
A. Bank loan
B. Commercial papers
C. Trade credit
D. None of the given options.
Average Accounting Return is a measure of accounting profit relative to:
A. Book value
B. Intrinsic value
C. Cost
D. Market value
Profitability index (PI) rule is to take an investment, if the index exceeds………..?
A. -1
B. 0
C. 1
D. 2
When real rate is high, all the interest rates tend to be ………..?
A) Higher
B) Lower
C) Constant
D) None of the given options
Which of the following statement is CORRECT regarding compound interest?
A. It is the most basic form of calculating interest.
B. It earns profit not only on principal but also on interest.
C. It is calculated by multiplying principal by rate multiplied by time.
D. It does not take into account the accumulated interest for calculation.
Which of the following strategy belongs to restrictive policy regarding size of investments in current assets?
A. To maintain a high ratio of current assets to sales
B. To maintain a low ratio of current assets to sales
C. To less short-term debt and more long-term debt
D. To more short-term debt and less long-term debt