". VdoTips: Financial Management Practice Set



Financial Management Practice Set

81. The risk that arises due to change in the purchasing power is called
(A) Financial risk.
(B) Interest rate risk.
(C) Business risk.
(D) Inflation risk.
82. The factor(s) which affect(s) P/E ratio is/are ----
(A) Growth rate
(B) Debt proportion
(C) Retention ratio
(D) All of the above.
83. Long -term solvency is indicated by
(A) Liquidity ratio
(B) Debt-equity ratio
(C) Return coverage ratio
(D) Both a and b
84. Which of the following is/are the problem(s) encountered in financial statement analysis?
(A) Development of benchmarks.
(B) Window dressing.
(C) Interpretation of results.
(D) All of the above.
85. Earnings Per Share (EPS) is equal to ----
(A) Profit before tax/No. of outstanding shares.
(B) Profit after tax/No. of outstanding shares.
(C) Profit after tax/Amount of equity share capital.
(D) Profit after tax less equity dividends/No. of outstanding shares.