Important questions about Overview of Financial Management. Overview of Financial Management MCQ questions with answers. Overview of Financial Management exam questions and answers for students and interviews.

A technique that is used in comparative analysis of financial statement is

Options

A : a. graphical analysis

B : b. preference analysis

C : c. common size analysis

D : d. returning analysis

The net income available to stockholders is $125 and total assets are $1,096 then return on common equity would be

Options

A : a. 0.00114

B : b. 0.114

C : c. 0.12 times

D : d. 0.12

The price per share is $30 and earnings per share is $3.5 then price for earnings ratio would be

Options

A : a. 8.57 times

B : b. 0.0857

C : c. 0.11 times

D : d. 0.11

The price per share is $25 and the cash flow per share is $6 then the price to cash flow ratio would be

Options

A : a. 0.24 times

B : b. 4.16 times

C : c. 0.0416

D : d. 0.24

The low price for earnings ratio is the result of

Options

A : a. low riskier firms

B : b. high riskier firms

C : c. low dividends paid

D : d. high marginal rate

The profit margin = 4.5%, assets turnover = 2.2 times, equity multiplier = 2.7 times then return on assets will be

Options

A : a. 0.2673

B : b. 26.73 times

C : c. 0.094

D : d. 0.4 times

The formula such as, net income available for common stockholders divided by total assets is used to calculate

Options

A : a. return on total assets

B : b. return on total equity

C : c. return on debt

D : d. return on sales

The price per ratio is divided by cash flow per share ratio, is used for calculating

Options

A : a. dividend to stock ratio

B : b. sales to growth ratio

C : c. cash flow to price ratio

D : d. price to cash flow ratio

The techniques which are used to identify financial statements trends include

Options

A : a. common size analysis

B : b. percent change analysis

C : c. returning ratios analysis

D : d. both a and b

The net income available to stockholders is $150 and total assets are $2,100 then return on total assets would be

Options

A : a. 0.0007

B : b. 0.0714

C : c. 0.05 times

D : d. 7.15 times

The companies that help to set benchmarks are classified as

Options

A : a. competitive companies

B : b. benchmark companies

C : c. analytical companies

D : d. return companies

The total assets divided by common equity is a formula uses for calculating

Options

A : a. equity multiplier

B : b. graphical multiplier

C : c. turnover multiplier

D : d. stock multiplier

The price per share divided by earnings per share is the formula for calculating

Options

A : a. price earnings ratio

B : b. earnings price ratio

C : c. pricing ratio

D : d. earnings ratio

The profit margin multiply assets turnover multiply equity multiplier is used to calculate

Options

A : a. return on turnover

B : b. return on stock

C : c. return on assets

D : d. return on equity

A company's low earnings power and high interest cost cause financial changes, which have

Options

A : a. high return on equity

B : b. high return on assets

C : c. low return on assets

D : d. low return on equity

The ratios which relate firm's stock to its book value per share, cash flow and earnings are classified as

Options

A : a. return ratios

B : b. market value ratios

C : c. marginal ratios

D : d. equity ratios

The price earnings ratio and price by cash flow ratio are classified as

Options

A : a. marginal ratios

B : b. equity ratios

C : c. return ratios

D : d. market value ratios

The return on assets = 5.5%, Total assets $3,000 and common equity is $1,050 then the return on equity would be

Options

A : a. 22275

B : b. 0.1571

C : c. 0.01925

D : d. 1.925 times

If the profit margin is equal to 4.5% and the total assets turnover is 1.8% then the return on assets DuPont equation would be

Options

A : a. 0.025

B : b. 0.081

C : c. 0.004

D : d. 4 times

The high price to earnings ratio shows companies

Options

A : a. low dividends paid

B : b. high risk prospect

C : c. high growth prospect

D : d. high marginal rate

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