Q. The packing order theory is based on -----------
✅ Correct Answer: (D)
None of these
Financial Management MCQs and Notes
Q. The term financial engineering is used to ----------------
✅ Correct Answer: (B)
Risk management
Q. Shareholder value analysis is an approach to Financial Management Development in ------------------
✅ Correct Answer: (B)
1980
Q. Financial leverage is ----------------
✅ Correct Answer: (B)
EBIT/EBT
Q. Capital employed is ----------
✅ Correct Answer: (B)
Shareholders funds + Long funds
Q. Which ratio reveals how profitability of the owner’s funds have been utilized by the firm?
✅ Correct Answer: (A)
Return on equity
Q. Return on equity measures the profitability of ------------------- invested in the firm
✅ Correct Answer: (B)
Equity funds
Q. Return on assets is a ratio which measures ----------------
✅ Correct Answer: (C)
Profitability
Q. The net present value is expressed in financial value, where as internal rate of return(IRR) is expressed in ---------------
✅ Correct Answer: (B)
One thousand
Q. ------------- rate at which discounts the cash flows to zero
✅ Correct Answer: (C)
Cash flow