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1. From the going with data for certain stock, find the assessment of a call decision: Cost of stock now = $85.25 Exercise cost =

1. From the going with data for certain stock, find the assessment of a call decision:

Cost of stock now = $85.25

Exercise cost = $65.52

Standard deviation of continually escalated yearly return = 0.4784

Advancement period = a half year

Yearly advance expense = 11.252%

Given

Number of S.D. from Mean, (z) Area of the left or right (one tail)

0.2596 0.4013

0.3451 0.3821

0.5635 0.2912

0.6968 0.2743

e 0.12x0.5 = 1.062

In 1.0667 = 0.0646

2.Basic goal of Financial Management is ________________.

A.Maximization of benefit.

B.Maximization of investor's abundance

C.Ensuring Financial control in the firm.

D.All of these.

3.Financial construction alludes to ________________.

A.Short-term assets.

B.All the monetary assets.

C.Long-term assets.

D.All of these.

4.The market estimation of the firm is the outcome of__________.

A. Profit choices.

B. Working capital choices.

C. Capital planning choices.

D. Compromise among hazard and return.

5.Cost of capital is __________________.

A.Lesser than the expense of obligation capital.

B.Equal to the last profit paid to the value investors.

C.Equal to the profit assumptions for value investors for the coming year.

D.None of the abovementioned.

6.In Walter model recipe D represents _________________.

A. Profit per share.

B.Direct profit.

C. Direct income.

D. None of these.

7.___________ security is known as factor pay security.

A.Debentures.

B.Preference shares.

C.Equity shares.

D.None of these.

8.Quick resource does exclude ____________.

A. Government bonds.

B. Book obligations.

C. Advance for supply of crude materials.

D .Inventories.

9.Long term account is needed for ______________.

A.Current resources.

B.Fixed resources.

C.Intangible resources.

D.None of these.

10.Financial influence can be estimated in ___________________.

A.Stock term.

B.Flow term.

C.Both (a) and (b).

D.None of these.

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