Coporate Finacial

Basic objective of Financial Management is ________________.

• Maximization of profit.

• Maximization of share holder's wealth

• Ensuring Financial discipline in the firm.

• All of these.

Financial structure refers to ________________.

• Short-term resources.

• All the financial resources.

• Long-term resources.

• All of these.

The market value of the firm is the result of__________.

• Dividend decisions.

• Working capital decisions.

• Capital budgeting decisions.

• Trade-off between risk and return.

Cost of capital is __________________.

• Lesser than the cost of debt capital.

• Equal to the last dividend paid to the equity shareholders.

• Equal to the dividend expectations of equity shareholders for the coming year.

• None of the above.

In Walter model formula D stands for _________________.

• Dividend per share.

• Direct dividend.

• Direct earnings.

• None of these.

___________ security is known as variable income security.

• Debentures.

• Preference shares.

• Equity shares.

• None of these.

Quick asset does not include ____________.

• Government bonds.

• Book debts.

• Advance for supply of raw materials.

• Inventories.

Long term finance is required for ______________.

• Current assets.

• Fixed assets.

• Intangible assets.

• None of these.

Financial leverage can be measured in ___________________.

• Stock term.

• Flow term.

• Both (a) and (b).

• None of these.

Current ratio of a concern is 1, its net working capital will be _________.

• Positive.

• Neutral.

• Negative.

• None of the above.