MGT201 Solved MCQs Past Papers

MGT201-FM

Q2. of 15 ( Start time: 11:44:56 PM ) Total Marks: 1

percent, the future value of this annuity is closest to which of the following equations?

(Rs.100)(FVIFA at 8% for 5 periods) (Rs.100)(FVIFA at 8% for 4 periods)(1.08) (Rs.100) (FVIFA at 8% for 5 periods)(1.08) (Rs.100)(FVIFA at 8% for 4 periods) + Rs.100

Q15. of 15 ( Start time: 10:52:13 PM ) Total Marks: 1

If a firm has a DOL of 5 at Q units, what would be the effect on sales and EBIT?

If sales rise by 5%, EBIT will rise by 5%

If sales rise by 1%, EBIT will rise by 1%

If sales rise by 5%, EBIT will fall by 25%

If sales rise by 1%, EBIT will rise by 5%

Q5. of 15 ( Start time: 10:05:42 PM ) Total Marks: 1

Which of the following statistic measures the returns of two risky assets that move together?

Correlation

Square root

Variance

Q1. Cash outflow to shareholders as dividends

Cash inflow to the firm from selling new common equity shares

Cash outflow to purchase bonds issued by another company

Q8. percent, the present value of this annuity is closest to which of the following equations?

(Rs.100)(PVIFA at 8% for 4 periods) + Rs.100

(Rs.100)(PVIFA at 8% for 4 periods)(1.08)

(Rs.100)(PVIFA at 8% for 6 periods) - Rs.100

Q9. Which of the following is correct regarding the opportunity cost of capital for a project?

The opportunity cost of capital is the return that investors give up by investing in the project rather than in securities of equivalent risk.

Financial managers use the capital asset pricing model to estimate the opportunity cost of capital

The company cost of capital is the expected rate of return demanded by investors in a company

All of the given options

Q1. of 10 ( Start time: 10:15:03 AM ) Total Marks: 1

Which of the following is the stability of a firm's operating income?

Financial leverage Weighted-average cost of capital Capital structure Business risk

Q2. of 10 ( Start time: 10:15:43 AM ) Total Marks: 1

Which of the following is the cash required during a specific period to meet interest expenses and principal payments?

Q3. of 10 ( Start time: 10:16:18 AM ) Total Marks: 1

Which of the following is NOT an example of a financial intermediary?

Wisconsin S&L, a savings and loan association Strong Capital Appreciation, a mutual fund Microsoft Corporation, a software firm College Credit, a credit union

Q4. of 10 ( Start time: 10:17:02 AM ) Total Marks: 1

How economic value is added (EVA) calculated?

It is the difference between the market value of the firm and the book value of equity It is the firm's net operating profit after tax (NOPAT) less a dollar cost of capital charge It is the net income of the firm less a dollar cost that equals WAAC multiplied by the book value of liabilities and equities None of the given option

Q5. of 10 ( Start time: 10:18:02 AM ) Total Marks: 1

An annuity due is always worth _____ a comparable annuity.