MGT201 Final Term Solved MCQs

MGT201 FINAL TERM SOLVED MCQs (VISIT VUANSWER FOR MORE)

Q1. Who determines the market price of a share of common stock? (1 marks)

1. Individuals buying and selling the stock
2. The board of directors of the firm
3. The stock exchange on which the stock is listed
4. The president of the company

Q2. Which of the following would cause the gross profit margin to remain unchanged, but the net profit margin declined over the same period? (1 marks)

1. Cost Cost of goods sold increased relative to sales
2. Sales increased relative to expenses
3. Govt. increased the tax rate
4. Di DiDividends were decreased

Q3. ABC’s and XYZ’s debt-to-total assets ratio is 0.4. What is its debt-to-equity ratio? (1 marks)

1. 0 .2
2. 0 .77
3. 0.667
4. 0.333

Q4. Which of the following make the calculation of NPV difficult? (1 marks)

1. Estimated cash flows
2. Discount rate
3. Anticipated life of the business
4. All of the given options

Q5. Who is responsible for the decisions relating capital budgeting and capital rationing? (1 marks)

1. Chief executive officer
2. Junior management
3. Division heads
4. All of the given option

Q6. Mortgage bonds are secured by real property whose value is generally (1 marks)

than that of the value of the bonds issue?.

1. Higher
2. Lower
3. Equal
4. Higher or lower

Q7. The value of direct claim security is derived from which of the following? (1 marks)

1. Fundamental analysis
2. Underlying real asset
3. Supply and demand of securities in the market
4. All of the given options

Q8. Which of the following would tend to reduce a firm's P/E ratio? (1 marks)

1. The firm significantly decreases financial leverage
2. The firm increases return on equity for the long term
3. The level of inflation is expected to increase to double-digit levels
4. The rate of return on Treasury bills decreases

Q9. How the beta of a stock can be calculated? (1 marks)

1. By monitoring price of the stock
2. By monitoring rate of return of the stock