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Financial Management Practice Set

31. The formula of EBIT = ________
(A) Sales - Variable cost
(B) Contribution - Fixed cost
(C) Sales - Fixed cost
(D) All the above


32. Shares having no face value are known as
(A) no par stock
(B) at par stock
(C) equal stock
(D) debt equity stock


33. A fixed rate of ------------------is payable on debentures
(A) dividend
(B) Commission
(C) Interest
(D) Brokerage


34. Effective cost of debentures is_____________as compared to shares
(A) higher
(B) lower
(C) equal
(D) medium


35. Ownership securities are represented by _______
(A) securities
(B) equities
(C) debt
(D) debentures