Financial Management

✅ The correct answer is A.

✅ The correct answer is A.
FV = PV ( 1 + r/100 )ⁿ
= 100 ( 1 + 5/100 )³
= Rs. 115.76

✅ The correct answer is C.
Markets where assets are bought or sold within a few days or at some future dates are classified as spot markets and future markets. The spot market is where financial instruments, such as commodities, currencies and securities, are traded for immediate delivery. Delivery is the exchange of cash for the financial instrument. A futures contract, on the other hand, is based on the delivery of the underlying asset at a future date.

✅ The correct answer is D.
Political stability is the major factor concerning country risk. Political stability in this case refers to the lack of real competition for the governing elite. The ‘politically stable’ system enforces stringent barriers to personal freedoms.

✅ The correct answer is C.
Return on investment = Amount recieved – Amount invested
= Rs. 1500 – Rs. 2500 = – Rs. 1000.

✅ The correct answer is D.
Expected capital gain = Expected final stock price – Original investment
= Rs. 45 – Rs. 25 = Rs. 20.00

✅ The correct answer is C.
In weighted average capital, capital structure weights estimation does not rely on value of book value of equity. Book value of equity, also known as shareholder’s equity, is a firm’s common equity that represents the amount available for distribution to shareholders.

✅ The correct answer is B.
Accounts payable, accruals and notes payables are listed on balance sheet as current liabilities. Current liabilities are a company’s debts or obligations that are due within one year or within a normal operating cycle.

✅ The correct answer is C.
The material wealth of a society is equal to the sum of all financial and real assets. The material wealth of a society is determined ultimately by the productive capacity of its economy— the goods and services that can be provided to its members.

✅ The correct answer is A.
Gross working capital is also known as going concern concept since finance manager is highly concerned with the management of these assets with a view of bringing about productivity from other assets