Annual cash dividends divided by annual earnings; or alternatively, dividends per share divided by earning per share is termed as:
A. Earning per share ratio
B. Proposed dividend ratio
C. Dividend pay-out ratio
D. Expected dividend ratio
The investment decision is the most important of the firm’s three major decisions, when it comes to:
A. Value creation
B. Value addition
C. Value proposition
D. Value deletion
Having some overall goal in mind, financial management is concerned with:
A. Acquisition of assets
B. Financing of assets
C. Management of assets
D. All of them
In financial markets, period of maturity less than one year of financial instruments is classified as:
A. Short-term
B. Long-term
C. Intermediate term
Price for debt is called:
A. Debt rate
B. Investment return
C. Discount rate
D. Interest rate
Notes, mortgages, bonds, stocks, treasury bills and consumer loans are classified as:
A. Financial instruments
B. Capital assets
C. Primary assets
D. Competitive instruments
Legal entity separation from its legal owners and managers with help of state laws is classified as:
A. Controlled corporate business
B. Corporation
C. Limited corporate business
D. Unlimited corporate business
Set of rules made by corporation founders such as directors election procedure are classified as:
A. Stock laws
B. By laws
C. Liability laws
D. Corporate laws
Price per share is $30 and an earnings per share is $3.5 then price for earnings ratio would be:
A. 8.57 times
B. 8.57%
C. 0.11 times
D. 11%
A technique uses in comparative analysis of financial statement is:
A. Graphical analysis
B. Preference analysis
C. Common size analysis
D. Returning analysis
