Question: Help me 76.The risk averse prefers debt instruments, while the risk seekers go for ________. A. Equity investments. B. Preference investments. C. Debt investments. D.

Help me

76.The risk averse prefers debt instruments, while the risk seekers go for ________.

A. Equity investments.

B. Preference investments.

C. Debt investments.

D. None of these.

77.When capital market is booming, firms can take market route to ________.

A. Raise capital.

B. Decrease capital.

C .Stop growing.

D Stagnate.

78.__________ is the expected cash dividend that is normally paid to shareholders.

A.Stock split.

B.Stock dividend.

C.Extra dividend.

D.Regular dividend.

79.What method of stock repurchase occurs when the buyer seeks bids within a specified

price range and accepts the lowest price that will allow it to acquire the entire block of

securities desired?

A.Dutch-auction.

B.Fixed-price.

C.Open-market.

D.Fair-warning.

80.The __________ is the proportion of earnings that are paid to common shareholders in the

form of a cash dividend.

A. Retention rate.

B.1 plus the retention rate.

C. Growth rate.

D. Dividend pay-out ratio.

81. A method of budgeting that estimates todays value of money to be received in the future;

It is discounted due to the uncertainty of its true value in the future and for the cost of the

capital is______________.

A. Cash inflow.

B. Cash outflow.

C. Discounted cash flow.

D .Payback period

82.The long-run objective of financial management is to ___________.

A. Maximize earnings per share.

B. Maximize the value of the firm's common stock.

C. Maximize return on investment.

D. Maximize market share.

83.The field of finance is closely related to the fields of _________.

A. Statistics and economics.

B. Statistics and risk analysis.

C. Economics and accounting.

D. Accounting and comparative return analysis.

84.The ultimate measure of performance is _____________.

A. Amount of the firm's earnings.

B .The how the earnings are valued by the investor.

C. The firm's profit margin.

D.Return on the firm's total assets.

85.Which of the following are not among the daily activities of financial management?

A.Sale of shares and bonds.

B.Credit management.

C.Inventory control.

D.The receipt and disbursement of funds.

86.A main benefit to the corporate form of organization is __________.

A. Double taxation of corporate income.

B. Simplicity of decision making and low organizational complexity.

C. Limited liability for the corporate shareholders.

D. A major management role exists for the firm's owners.

87.Capital is allocated by financial markets by _______________.

A. A lottery system between investment dealers.

B. Pricing securities based on their risk and expected future cash flows

C. By pricing risky securities higher than low-risk securities.

D .By a government risk-rating system based on AAA for low risk and CCC for high

risk.

88.The allocation of capital is determined by _________.

A. Expected rates of return.

B. The Bank of Canada.

C .The initial sale of securities in the primary market.

D. The size of the federal debt.

89.The mix of debt and equity in a firm is referred to as the firm's _______.

A. Primary capital.

B. Capital composition.

C .Cost of capital.

D. Capital structure.

90.The main focus of finance for the last 40 years has been _______.

A. Mergers and acquisitions.

B. Conglomerate firms.

C. Inflation.

D .Risk-return relationships.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!