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Financial management Practice Questions & Answers

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An interest rate which is quoted by brokers, banks and other financial institutions is classified as

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An interest rate which is quoted by brokers, banks and other financial institutions is classified as

A).  annuity rate

B).  perpetuity rate

C).  nominal rate

D).  external rate of return

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If security pays Rs 5,000 in 20 years with 7% annual interest rate, PV of security by using formula is

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If security pays Rs 5,000 in 20 years with 7% annual interest rate, PV of security by using formula is

A).  Rs 1,290.10

B).  Rs 1,292.10

C).  Rs 1,295.10

D).  Rs 1,297.10

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In situation of bankruptcy, stock which is recorded above common stock and below debt account is

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In situation of bankruptcy, stock which is recorded above common stock and below debt account is

A).  debt liabilities

B).  preferred stock

C).  hybrid stock

D).  common liabilities

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Cash and equivalents, inventories and accounts receivables are classified as

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Cash and equivalents, inventories and accounts receivables are classified as

A).  assets on balance sheet

B).  liabilities on balance sheet

C).  earnings on income statement

D).  payments on income statement

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Non cash revenues are Rs 500,000 and net income is Rs 950,000 then net cash flow would be

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Non cash revenues are Rs 500,000 and net income is Rs 950,000 then net cash flow would be

A).  Rs 475,000.00

B).  Rs 485,000.00

C).  Rs 1,450,000.00

D).  Rs 450,000.00