Financial Management

✅ The correct answer is B.
The dividend-payout ratio is equal to dividends per share divided by earnings per share.

✅ The correct answer is A.
Capital gains yield is multiplied for beginning price to calculate capital gain. Capital gain is a rise in the value of a capital asset (investment or real estate) that gives it a higher worth than the purchase price. The gain is not realized until the asset is sold.

✅ The correct answer is C.
In financial markets, period of maturity within one to five years of financial instruments is classified as intermediate term. A term is an intermediate (or innominate) term if the remedy for its breach depends on the effect of the breach at the time it happens.

✅ The correct answer is B.
Net income available to stockholders = 150

Total assets = 2100

Return on common equity rate shows the net income earned per every rupee invested.It acts as a yardstick of profitability.

Return on common equity

= (net income – preferential stock)/Average common stock holder’s equity

No further information is available

= (150/2100)×100

= 7.14%

✅ The correct answer is B.
In cash flow estimation, depreciation is considered as noncash charge. A company will take a non-cash charge against non-cash items on the balance sheet, such as depreciation, amortization, and depletion. These charges are typically made when something unusual happens, often outside the control of the company.

✅ The correct answer is D.
Gross Working Capital is the sum of the total current assets, Net working capital represents current assets – current liablities and Net working capital can be negative of the following statement are true in respect of working capital.

✅ The correct answer is C.

✅ The correct answer is A.
An excess of actual price of option over an exercise value of option is classified as time value options. In options trading, time value refers to the portion of an option’s premium that is attributable to the amount of time remaining until the expiration of the option contract.

✅ The correct answer is D.
Type of stock which have characteristics of bonds and common stock is classified as preferred stock. Preferred stock refers to a class of ownership that has a higher claim on assets and earnings than common stock has.

✅ The correct answer is D.
An outstanding bonds are also classified as seasoned bonds. A seasoned issue is an issue of additional securities from an established company whose securities already trade in the secondary market. A seasoned issue is also known as a “seasoned equity offering” or “follow-on offering.”