FINANCIAL MANAGEMENT - PART-1

Financial management is mainly concerned with

• All aspects of acquiring and utilizing financial resources for firms activities

• Arrangement of funds

• Efficient Management of every business

• Profit maximisation

The primary goal of financial management is

• to maximize the return

• to minimize the risk

• to maximize wealth of owners

• to maximize profit

Market value of shares is influenced by

• financing decision

• investment decision

• dividend decision

• financial decision

A decision to acquire a new and modern plant to upgrade an old one is a

• financing decision

• working capital decision

• investment decision

• none of the above

Cost of advertising, printing prospectus etc incurred at the time of raising funds is called-----------------

Which of the following can't be a Capital Structure?

• Equity + Debentures

• Equity only

• Preference Shares only

• Equity + Preference

Which is the cheapest Source of Finance

• Debt

• Equity

A firm should use .............. when evaluating an investment

• the least costly source of financing

• the most costly source of financing

• the weighted average cost of all financing sources

• the current opportunity cost

The degree of combined leverage is

• The percentage change in sales divided by the percentage change in earnings per share

• The percentage change in earnings before interest and taxes divided by the percentages change in sales

• The degree of operating leverage divided by the degree of financial leverage

• The percentage change in earnings per share divided by the percentage change in sales

Financial management is concerned with managerial activities relating to

• Planning

• Procurement and administration of funds

• Optimum utilisation of funds

• All of the above