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This set of Financial Management Multiple Choice Questions & Answers (MCQs) focuses on Financial Management Set 7

Q1 | Operating leverage arises because of:
Q2 | Financial Leverage arises because of:
Q3 | Operating Leverage is calculated as:
Q4 | Financial Leverage is calculated as:
Q5 | Which combination is generally good for firms
Q6 | Combined leverage can be used to measure the relationship between:
Q7 | FL is zero if:
Q8 | Business risk can be measured by:
Q9 | Financial Leverage measures relationship between
Q10 | Use of Preference Share Capital in Capital structure
Q11 | Relationship between change in sales and change m is measured by:
Q12 | Operating leverage works when:
Q13 | Which of the following is correct?
Q14 | If the fixed cost of production is zero, which one of the following is correct?
Q15 | If a firm has no debt, which one is correct?
Q16 | If a company issues new share capital to redeem debentures, then:
Q17 | If a firm has a DOL of 2.8, it means:
Q18 | Higher OL is related to the use of higher:
Q19 | Higher FL is related the use of:
Q20 | In order to calculate EPS, Profit after Tax and Preference Dividend is divided by:
Q21 | Trading on Equity is
Q22 | Benefit of 'Trading on Equity' is available only if:
Q23 | Indifference Level of EBIT is one at which:
Q24 | Financial Break-even level of EBIT is one at which:
Q25 | Relationship between change in Sales and d Operating Profit is known as: