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by Arshad Iqbal

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Financial management multiple choice questions has 732 MCQs. Financial management quiz questions and answers pdf, MCQs on financial statements analysis, financial management overview, capital budgeting, cash flow analysis, cash flow estimation and risk analysis, applications in corporate finance MCQs with answers, financial options, bonds, bond valuation, cost of capital, environment, portfolio theory MCQs and quiz with study guides to test study skills for CFA/CFP/AFA certifications.

Financial management multiple choice quiz questions and answers pdf, finance exam revision and study guide with practice tests for CFA/CFP/AFA for online exam prep and interviews. Finance interview questions and answers to ask, to prepare and to study for jobs interviews and career MCQs with answer keys.

Cash flow estimation and risk analysis quiz has 32 multiple choice questions. Risk management, return, and capital asset pricing model quiz has 76 multiple choice questions. Portfolio theory and asset pricing models quiz has multiple choice questions with answers. Capital budgeting techniques and cash flows analysis quiz has 56 multiple choice questions. Cost of capital quiz has 53 multiple choice questions.

Financial options and applications in corporate finance quiz has 68 multiple choice questions. Overview of financial management and environment quiz has 99 multiple choice questions. Financial statements analysis quiz has 25 multiple choice questions. Stocks valuation and stock market equilibrium quiz has 85 multiple choice questions. Bonds and bond valuation quiz has 83 multiple choice questions. Time value of money quiz has 90 multiple choice questions.

Finance interview questions and answers pdf, MCQs on corporate finance, arbitrage pricing theory, capital asset pricing model, capital and security market line, capital risk adjustment, balance sheet accounts, balance sheet format, balance sheet in finance, beta coefficient in finance, binomial approach, black Scholes option pricing model, bond valuation calculations, bond valuations, bond yield and bond risk premium, calculating beta coefficient, cash flow analysis, applications of cash flow evaluation, cash inflows and outflows, cash flow and taxes, changes in bond values over time, choosing optimal portfolio, common stock valuation, comparative ratios and benchmarking, constant growth stocks, corporate action life cycle, corporate life cycle in finance, cost analysis, cost of capital for risk adjustment, coupon bonds, dividend stock, efficient market hypothesis, efficient portfolios, estimating cash flows, expected rate of return on constant growth stock, FAMA French model, FAMA French three factor model, financial bonds, financial institutions and corporations, financial management balance sheets, financial management corporate life cycle in finance, financial markets and institutions, financial options, financial planning, financial security, financial statements, fixed and variable annuities, free cash flow, future value calculations, income statement and reports, income statements, inflation adjustment, internal rate of return, international financial institutions, investment returns calculations, key characteristics of bonds, legal rights and privileges of common stockholders, market analysis and value ratios, market values, maturity risk premium, multiple internal rate of returns, net cash flow, net present value, NPV, IRR formula, objective of corporation value maximization, perpetuities formula, portfolio analysis, portfolio risk management, preferred stock, present value of annuity, profitability index, profitability ratios, project analysis, put call parity relationship, relationship between risk and rates of return, risk and rates of return on investment, risk and return and risk free rate of return MCQs.

Publisher: Bushra ArshadReleased: May 22, 2016ISBN: 1310649804Format: book

**A **

**MCQ 1: **A project whose cash flows are more than the capital invested for rate of return then the net present value will be

A. positive

B. independent

C. negative

D. zero

**MCQ 2: **In the mutually exclusive projects, the project which is selected for comparison with others must have

A. higher net present value

B. lower net present value

C. zero net present value

D. all of above

**MCQ 3: **The relationship between Economic Value Added (EVA) and the Net Present Value (NPV) is considered as

A. valued relationship

B. economic relationship

C. direct relationship

D. inverse relationship

**MCQ 4: **An uncovered cost at start of year is $200, full cash flow during recovery year is $400 and prior years to full recovery is 3 then payback would be

A. 5 years

B. 3.5 years

C. 4 years

D. 4.5 years

**MCQ 5: **in capital budgeting, the positive net present value results in

A. negative economic value added

B. positive economic value added

C. zero economic value added

D. percent economic value added

**MCQ 6: **An uncovered cost at the start of year is divided by full cash flow during recovery year then added in prior years to full recovery for calculating

A. original period

B. investment period

C. payback period

D. forecasted period

**MCQ 7: **In cash flow analysis, the two projects are compared by using common life is classified as

A. transaction approach

B. replacement chain approach

C. common life approach

D. Both B and C

**MCQ 8: **Other factors held constant, but the lesser project liquidity is because of

A. shorter payback period

B. greater payback period

C. less project return

D. greater project return

**MCQ 9: **In capital budgeting, an internal rate of return of the project is classified as its

A. external rate of return

B. internal rate of return

C. positive rate of return

D. negative rate of return

**MCQ 10: **In independent projects evaluation, the results of internal rate of return and net present value lead to

A. cash flow decision

B. cost decision

C. same decisions

D. different decisions

**MCQ 11: **In internal rate of returns, the discount rate which forces the net present values to become zero is classified as

A. positive rate of return

B. negative rate of return

C. external rate of return

D. internal rate of return

**MCQ 12: *** The projects which are mutually exclusive but different on scale of production or time of completion then the

A. external return method

B. net present value of method

C. net future value method

D. internal return method

**MCQ 13: **The graph which is plotted for projected net present value and capital rates is called

A. net loss profile

B. net gain profile

C. net future value profile

D. net present value profile

**MCQ 14: **A modified internal rate of return is considered as present value of costs and is equal to

A. PV of hurdle rate

B. FV of hurdle rate

C. PV of terminal value

D. FV of terminal value

**MCQ 15: *** The set of projects or set of investments usually maximize the firm value is classified as

A. optimal capital budget

B. minimum capital budget

C. maximum capital budget

D. greater capital budget

**MCQ 16: **A point where the profile of net present value crosses the horizontal axis at the plotted graph indicates the project

A. costs

B. cash flows

C. internal rate of return

D. external rate of return

**MCQ 17: **The modified rate of return and modified internal rate of return with exceed cost of capital if the net present value is

A. positive

B. negative

C. zero

D. one

**MCQ 18: **The payback period in which an expected cash flows are discounted with the help of project cost of capital is classified as

A. discounted payback period

B. discounted rate of return

C. discounted cash flows

D. discounted project cost

**MCQ 19: **In alternative investments, the constant cash flow stream is equal to initial cash flow stream in the approach which is classified as

A. greater annual annuity method

B. equivalent annual annuity

C. lesser annual annuity method

D. zero annual annuity method

**MCQ 20: **In capital budgeting, a negative net present value results in

A. zero economic value added

B. percent economic value added

C. negative economic value added

D. positive economic value added

**MCQ 21: **The number of years forecasted to recover an original investment is classified as

A. payback period

B. forecasted period

C. original period

D. investment period

**MCQ 22: **In capital budgeting, the term of bond which has great sensitivity to interest rates is

A. long-term bonds

B. short-term bonds

C. internal term bonds

D. external term bonds

**MCQ 23: **The process in which the managers of the company identify projects to add value is classified as

A. capital budgeting

B. cost budgeting

C. book value budgeting

D. equity budgeting

**MCQ 24: **A discount rate which equals to the present value of TV to the project cost present value is classified as

A. negative internal rate of return

B. modified internal rate of return

C. existed internal rate of return

D. relative rate of return

**MCQ 25: **An uncovered cost at start of year is $300, full cash flow during recovery year is $650 and prior years to full recovery is 4 then payback would be

A. 3.46 years

B. 2.46 years

C. 5.46 years

D. 4.46 years

**MCQ 26: **The project whose cash flows are sufficient to repay the capital invested for rate of return then the net present value will be

A. negative

B. zero

C. positive

D. independent

**MCQ 27: **The present value of future cash flows is $2000 and an initial cost is $1100 then the profitability index will be

A. 55%

B. 1.82

C. 0.55

D. 1.82%

**MCQ 28: **The profitability index in capital budgeting is used for

A. negative projects

B. relative projects

C. evaluate projects

D. earned projects

**MCQ 29: **Other factors held constant, the greater project liquidity is because of

A. less project return

B. greater project return

C. shorter payback period

D. greater payback period

**MCQ 30: **In calculation of internal rate of return, an assumption states that received cash flow from the project must

A. be reinvested

B. not be reinvested

C. be earned

D. not be earned

**MCQ 31: **In capital budgeting, the number of non-normal cash flows have internal rate of returns are

A. one

B. multiple

C. accepted

D. non-accepted

**MCQ 32: **An internal rate of return in capital budgeting can be modified to make it the representative of

A. relative outflow

B. relative inflow

C. relative cost

D. relative profitability

**MCQ 33: **The situation in which the firm limits the expenditures on capital is classified as

A. optimal rationing

B. capital rationing

C. marginal rationing

D. transaction rationing

**MCQ 34: **The initial cost is $5000 and the probability index is 3.2 then the present value of cash flows is

A. $8,200

B. $16,000

C. 0.0064

D. $1,562.50

**MCQ 35: **A project which have one series of cash inflows and results in one or more cash outflows is classified as

A. abnormal costs

B. normal cash flows

C. abnormal cash flow

D. normal costs

**MCQ 36: **The present value of future cash flows is divided by an initial

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