Financial Management

✅ The correct answer is A.
First step in calculating value of stock with non-constant growth rate is to estimate expected dividend. Dividend yield refers to a stock’s annual dividend payments to shareholders, expressed as a percentage of the stock’s current price.

✅ The correct answer is D.
Free cash flow = Investment outlay cashflow + operating cash flow + salvage cash flow
= 2000 + 1500 + 3000
= Rs. 6500.

✅ The correct answer is B.
Banks such as Bank of America serves a range of savers and borrowers are classified as commercial banks. Commercial banks make money by providing loans and earning interest income from those loans.

✅ The correct answer is C.
The probability of bankrupt is higher only levered firm.

✅ The correct answer is D.
A techniques uses to identify financial statements trends are included in common size analysis and percent change analysis.

✅ The correct answer is C.
Formula Sales revenue minus operating cost and taxes minus operating capital investments is used to calculate free cash flows. Free cash flow is the cash a company produces through its operations, less the cost of expenditures on assets.

✅ The correct answer is C.
Expected dividend yield = Expected rate of return – Constant growth rate
= 13 5% – 9.5% = 4.00%

✅ The correct answer is A.
Bonds issued by local and state governments with default risk are municipal bonds. Municipal bonds are loans investors make to local governments.

✅ The correct answer is C.
The amount of current assets that varies with seasonal requirements is referred to as Temporary working capital. Temporary working capital (TWC) is the temporary fluctuation of networking capital over and above the permanent working capital.

✅ The correct answer is B.
In BSE shares are divided into three categories. Primarily the stocks that are listed in the National Stock Exchange are divided into three different categories on the basis of the market capitalization – large cap, mid cap and the small cap.