MCQs4All - Finance Collection

Finance MCQs for NTS, FPSC, CSS, PPSC, PMS, UTS, FTS, OTS, Accounting, MBA, BBA of past papers

Question. An equation in which total assets are multiplied to profit margin is classified as
  1. du DuPont equation
  2. turnover equation
  3. preference equation
  4. common equation
Question. An equity multiplier is multiplied to return on assets to calculate
  1. return on assets
  2. return on multiplier
  3. return on turnover
  4. return on stock
Question. An increase in interest rate leads to decline in value of
  1. junk bonds
  2. outstanding bonds
  3. standing bonds
  4. premium bonds
Question. An increase in marginal cost of capital and capital rationing are two arising complications of
  1. maximum capital budget
  2. greater capital budget
  3. optimal capital budget
  4. minimum capital budget
Question. An increase in value of option leads to low present value of exercise cost only if it has
  1. low volatility
  2. interest rates are high
  3. interest rates are low
  4. high volatility
Question. An individual stock required return is equal to risk free rate plus bearing risk premium is an explanation of
  1. security market line
  2. capital market line
  3. aggregate market line
  4. beta market line
Question. An inexpensive and easy business formation and few government regulations are advantages of
  1. private corporation
  2. personal ownership
  3. proprietorship
  4. personal business
Question. An inflation free rate of return and inflation premium are two components of
  1. quoted rate
  2. unquoted rate
  3. steeper rate
  4. portfolio rate
Question. An indication in a way that variance of y-variable is explained by x-variable which is shown as
  1. degree of dispersion is one
  2. degree of dispersion is two
  3. degree of dispersion is three
  4. degree of dispersion is four
Question. An inflation rate included in bonds interest rate is one which is inflation rate
  1. at bond issuance
  2. expected in future
  3. expected at time of maturity
  4. expected at deferred call
Question. An initial cost is $6000 and probability index is 5.6 then present value of cash flows will be
  1. 25000
  2. 28000
  3. 33600
  4. 30000
Question. An interest rate is 5%, number of period are 3, and present value is $100, then future value will be
  1. 115.76
  2. 105
  3. 110.25
  4. 113.56
Question. An interest rate which is paid by firm as soon as it issues debt is classified as pre-tax
  1. term structure
  2. market premium
  3. risk premium
  4. cost of debt