Finance Mcqs


Q.  A firm has paid out Rs. 150,000 as dividends from its net income of Rs. 250,000. What is the retention ratio for the firm?

a. 12%
b. 25%
c. 40%
d. 60%


ANSWER: See Answer
 
Retention ratio = Net income – Dividend / Net income
= 250 – 150 / 250 = 0.4 or 40%
MCQs:  Net income available to stockholders is $125 and total assets are $1,096 then return on common equity would be________?
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MCQs:  Price per share is $30 and an earnings per share is $3.5 then price for earnings ratio would be_____________?
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MCQs:  Formula such as net income available for common stockholders divided by total assets is used to calculate__________________________?
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MCQs:  Price per ratio is divided by cash flow per share ratio which is used for calculating___________?
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MCQs:  A techniques uses to identify financial statements trends are included____________?
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MCQs:  Companies that help to set benchmarks are classified as__________?
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MCQs:  Total assets divided common equity is a formula uses for calculating___________?
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MCQs:  Price per share divided by earnings per share is formula for calculating_________?
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MCQs:  In independent projects evaluation, results of internal rate of return and net present value lead to_____________?
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MCQs:  Company low earning power and high interest cost cause financial changes which have_____________?
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MCQs:  Projects which are mutually exclusive but different on scale of production or time of completion then the__________________?
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MCQs:  A point where profile of net present value crosses horizontal axis at plotted graph indicates project____________________?
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MCQs:  Profit margin multiply assets turnover multiply equity multiplier is used to calculate____________?
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MCQs:  Payback period in which an expected cash flows are discounted with help of project cost of capital is classified as___________________?
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MCQs:  Ratios which relate firm’s stock to its book value per share, cash flow and earnings are classified as_________?
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MCQs:  An equation in which total assets are multiplied to profit margin is classified as_____________?
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MCQs:  In capital budgeting, term of bond which has great sensitivity to interest rates is______________?
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MCQs:  Price earning ratio and price by cash flow ratio are classified as___________?
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MCQs:  High price to earning ratio shows company’s_____________?
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MCQs:  Process of comparing company results with other leading firms is considered as____________?
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