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This set of Financial Management Multiple Choice Questions & Answers (MCQs) focuses on Financial Management Set 26

Q1 | LIBOR is a term of -------------
Q2 | Foreign bonds are -------------------
Q3 | Foreign bonds, are foreign currency bonds and sold at the country of that currency and are subject to the restrictions as placed by that country on the -------------------
Q4 | Euro bond is a ------------
Q5 | Eurobonds are debt instruments denominated in a currency issued -----
Q6 | Bills discounting is a -----------------------
Q7 | The cost of capital is the rate of return of a company must earn on investment to maintain ----------------
Q8 | The cost of capital is --------------
Q9 | The debt capital can be raised from issue of -----
Q10 | The cost of debt capital is the ratio of interest payable on ---------
Q11 | Dividends are the ---------- of a company distributed amongst members in proportion to their shares
Q12 | A sound dividend policy contains the ------------- features
Q13 | This item can be treated as an item of current liability or as an item of appropriation
Q14 | Shareholder wealth" in a firm is represented by:
Q15 | The long-run objective of financial management is to:
Q16 | What are the earnings per share (EPS) for a company that earned Rs. 100,000 last year in after-tax profits, has 200,000 common shares outstanding and Rs. 1.2 million in retained earning at the year end?
Q17 | A(n) would be an example of a principal, while a(n) would be an example of an agent.
Q18 | The market price of a share of common stock is determined by:
Q19 | The focal point of financial management in a firm is:
Q20 | ___________________ of a firm refers to the composition of its long-term funds and its capital structure.
Q21 | In the _______________, the future value of all cash inflow at the end of time horizon ata particular rate of interest is calculated.
Q22 | ______________ is the price at which the bond is traded in the stock exchange.
Q23 | _____________ enhance the market value of shares and therefore equity capital is notfree of cost.
Q24 | In _______________ approach, the capital structure decision is relevant to the valuation of the firm.
Q25 | When __________ is greater than zero the project should be accepted.