finance mcqs

If you’re looking for assistance with financial management and preparing for accounting exams, Gurumcqs has over 2000 Finance MCQs with detailed explanations. The Finance MCQs section includes important questions related to financial management, financial accounting for finance and accounting Jobs, and Business Finance. These MCQs cover various topics such as Finance Basics, Time Value of Money, Future Value, Present Value, Future Annuity, Shares, Risk & Return, Capital Budgeting, General Financial Rules, Working Capital Management, financial accounting, and more. Additionally, you can also find software engineering MCQs questions and answers on the platform.

121. If market price of the share at expiration is $100 and exercise price is $80, then value of a call option at expiration is

(A) –$20
(B) $0
(C) $1
(D) $20

122. If market price of the share at expiration is $100 and exercise price is $80, then value of a put option at expiration is
(A) –$20
(B) $0
(C) $1
(D) $20

123. Cost of capital is equal to required return rate on equity in case if investors are only__________?
A. Valuation manager
B. Common stockholders
C. Asset seller
D. Equity dealer

124. A type of beta which incorporates about company such as changes in capital structure is classified as___________?
A. Industry Beta
B. Market Beta
C. Subtracted Beta
D. Fundamental Beta

125. A formula of after-tax component cost of debt is___________?
A. Interest rate-tax savings
B. Marginal tax-required return
C. Interest rate + tax savings
D. Borrowing cost + embedded cost

126. According to Black Scholes model, stocks with call option pays the__________?
A. Dividends
B. No dividends
C. Current price
D. Past price

127. Standard deviation is 18% and expected return is 15.5% then coefficient of variation would be__________?
A. 0.86%
B. 1.16%
C. 2.50%
D.−2.5%

128. When the stock market is rising it is called__________?
A. Booming
B. Bullish
C. Upward tendency
D. Hawkish

129. Dow Jones is stock exchange market of__________?
A. Tokyo
B. London
C. New York
D. None of these

130. Income that is saved and not invested is known as____________?
A. Capital
B. Deposit
C. Hoarding
D. None

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