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Financial Management Assignment

Total questions: 20

Worksheet time: 2mins

Name
Class
Date
1.

Wipro believes that an efficient capital structure should maximize the value of the company also

a)

Reduce financial distress

b)

Reduce cost of capital

c)

Reduce the amount of debt

d)

Reduce the amount of equity

2.

Asus has the opinion that the financial break-even point of its company is when

a)

Return per share is 1

b)

Return per share is infinite

c)

Return per share is 0

d)

Return per share is negative

3.

ITC breaks down its decision-making function of financial management into

a)

Investment, financing and asset management

b)

Cash management, capital budgeting, and credit management

c)

Financing and investing

d)

Financing and dividend

4.

The capital structure of DELL is said to be optimal only when the

a)

Debt-Equity ratio results in highest possible WACC

b)

Debt-Equity ratio results in WACC is equal to 1

c)

Debt-Equity ratio results in the lowest possible WACC

d)

Weight of equity is equal to weight of debt

5.

Name the activity that is not among the daily activities of financial management

a)

Credit management

b)

The receipt and disbursement of funds

c)

Inventory control

d)

Sale of shares and bonds

6.

Infosys ponders over the thought to find out which covers activity is covered by Financial Management at all levels of the company. If you know, help them out.

a)

Decision making

b)

Investment

c)

Channelising

d)

Corporate Responsibility

7.

Barack Obama thinks that the scope of modern financial management has expanded with the introduction of ......

a)

Procurement of optimal capital

b)

Efficient allocation of capital

c)

Capital budgeting technique

d)

Financial planning

8.

Sony company wants to know which financial statement identifies the origin of cash generation and its landing place.

a)

Income statements

b)

Fund flow statements

c)

Statements of shareholders' equity

d)

Liquidity statements

9.

Prime Minister Shri Narendra Modi thinks that capital is a pooled or inherited wealth secured in the form of securities and debt

a)

FALSE

b)

TRUE

10.

Socrates wants to know which concept in financial management refers to the proverb, "A deer in hand is worth ten in the forest.''

a)

Money valuing time

b)

Money value of period

c)

Time Value of money

d)

Intrinsic Value

11.

Panasonic company wants to know which is the universal lubricant that keep the Indian stock markets and its business dynamic ?

a)

Cash

b)

Securities

c)

Finance

d)

Debt

12.

Samsung Co. considers the Modern Approach to financial management as the 'Floaters Approach.'

a)
b)
13.

Mind tree is squeezing their heads to find out which of the following is an assumption under MM approach

a)

Market capitalizes the value of firm eliminating the equity-dividend split

b)

The expenditure of debt is costant

c)

None of the earnings is ploughed back

d)

Investors are rational and have homogenous expectation

14.

Ponnambala Thyaga Rajan Palanivel Rajan wants to find out which term is used to describe the place at which the rate of return of capital employed is equal to the rate of interest on the debt.

a)

EBIT breakeven point

b)

Financial breakeven point

c)

Cost indifference point

d)

Investment breakeven point

15.

Smt. Nirmala Sitharaman thinks that cushion margin is the surplus over the usual need of the day-to-day working capital needs used for providing emergency contingencies

a)

TRUE

b)

FALSE

16.

HP company is pondering over what would be its revenue before paying its fixed statutory liability when the revenue from operations is Rs 6 lakhs, its changing expenses are Rs 3 lakhs, and its stable expenses are Rs 1 lakhs. It also possesses a 10% debt for Rs 20000

a)

Rs 1.5 lakhs

b)

Rs 1.8 lakhs

c)

1.7 lakhs

d)

1.6 lakhs

17.

The revenue of Lenovo for July 2019 is Rs 10 lakhs, and its overhead charges are Rs 5 lakhs, and its permanent expense is Rs 2.5 lakhs find out its operating profit

a)

2.1 lakh

b)

2.3 lakhs

c)

2.5 lakhs

d)

2.7 lakhs

18.

Santhosh Super store's revenue from the operations is Rs 1 lakh; its fluctuating cost is Rs 30,000, its established expenses are 20,000, and it has a 10% debt of Rs 50,000. Compute their operating leverage.

a)

1.4 times

b)

1.3 times

c)

1.2 times

d)

1.1 times

19.

Rs 40,000 is the earnings of Prestige company after paying all its fixed liability from its capital of 4000 equity shares at Rs 100 each. What is it net income per share

a)

Rs 4

b)

Rs 20

c)

Rs 11

d)

Rs 10

20.

A project undertaken by Accenture requires an upfront investment of Rs 2 lakhs which aims to yield an annual revenue of Rs 40,000 for nine years. Its financial manager has to find what would be the reimbursement period of the investment assuming revenue inflows are uniform. Help him/her out ...

a)

4 years

b)

4.5 years

c)

5 years

d)

5.5 years