Finance Mcqs

When the stock market is rising it is called__________?

• (A)  Booming
• (B)  Bullish
• (C)  Upward tendency
• (D)  Hawkish

Answer

Submitted By :Ali Uppal

Standard deviation is 18% and expected return is 15.5% then coefficient of variation would be__________?

• (A)  0.86%
• (B)  1.16%
• (C)  2.50%
• (D)  −2.5%

Answer

Submitted By :Ali Uppal

According to Black Scholes model, stocks with call option pays the__________?

• (A)  Dividends
• (B)  No dividends
• (C)  Current price
• (D)  Past price

Answer

Submitted By :Ali Uppal

A formula of after-tax component cost of debt is___________?

• (A)  Interest rate-tax savings
• (B)  Marginal tax-required return
• (C)  Interest rate + tax savings
• (D)  Borrowing cost + embedded cost

Answer

Submitted By :Ali Uppal

A type of beta which incorporates about company such as changes in capital structure is classified as___________?

• (A)  Industry Beta
• (B)  Market Beta
• (C)  Subtracted Beta
• (D)  Fundamental Beta

Answer

Submitted By :Ali Uppal

Cost of capital is equal to required return rate on equity in case if investors are only__________?

• (A)  Valuation manager
• (B)  Common stockholders
• (C)  Asset seller
• (D)  Equity dealer

Answer

Submitted By :Ali Uppal