Money marvel- Finance event

The only viable goal of Financial Management is ?

• Profit maximization

• Wealth

  maximization

• Sales

  maximization

• Asset maximization

Time Value Money facilitates comparison of cash flows occurring at different time periods by ?

• Compounding all cash flows to a common point of time

• Discounting all cash flows to a common point of time

• Using either (a) or (b)

• Neither (a) or (b)

Internal growth rate is the maximum rate at which the firm can grow without external financing of any kind.

• True

• False

Real cost of capital is obtained dividing nominal cost of capital by?

• 1+inflation rate

• 1-inflation rate

• 1*(inflation rate)

• None of these

Risk of securities having different expected return can be compared with ?

• Standard deviations of securities

• Variance of securities

• Coefficient of variance

• None of these

Sensitivity analysis is an absolute measure of risk.

• True

• False

present value tables can be used only when cash flows are uniform to determine NPV.

• Discount

• Present value

• Annuity

• Cash flow

When the required rate of return is greater than coupon rate, then the bond value will be?

• Discount

• Premium

• Par value

• None of these

Cost caused due to inadequate cash are referred to as long costs.

• True

• False

is a more rigorous test of the solvency position of the business firm.

• Interest

  coverage ratio

• Debt service coverage ratio

• Operating ratio

• Profitability ratio