💰Finance MCQs
Finance MCQs
500 MCQs231
A project whose cash flows are more than the capital invested for rate of return then the net present value will be _________?
Apositive
Bindependent
Cnegative
Dzero
232
An equity multiplier is multiplied to return on assets to calculate __________?
Areturn on assets
Breturn on multiplier
Creturn on turnover
Dreturn on stock
233
The process of comparing company results with the other leading firms is considered as ___________?
Acomparison
Banalysis
Cbenchmarking
Dreturn analysis
234
The return on assets is equal 6.7% and equity multiplier is equal to 2.5% then the return on equity will be
A0.1675
B0.0268
C0.00373
D0.092
235
The high price to earnings ratio shows companies ____________?
Alow dividends paid
Bhigh risk prospect
Chigh growth prospect
Dhigh marginal rate
236
If the profit margin is equal to 4.5% and the total assets turnover is 1.8% then the return on assets DuPont equation would be _________?
A0.025
B0.081
C0.004
D4 times
237
The return on assets = 5.5%, Total assets $3,000 and common equity is $1,050 then the return on equity would be _________?
A22275
B0.1571
C0.01925
D1.925 times
238
The price earnings ratio and price by cash flow ratio are classified as __________?
Amarginal ratios
Bequity ratios
Creturn ratios
Dmarket value ratios
239
A point where the profile of net present value crosses the horizontal axis at the plotted graph indicates the project ___________?
Acosts
Bcash flows
Cinternal rate of return
Dexternal rate of return
240
The set of projects or set of investments to maximize the firm value is classified as __________?
Aoptimal capital budget
Bminimum capital budget
Cmaximum capital budget
Dgreater capital budget