Financial Management and Planning
Why is it important to calculate cash flow ratios:
Firms need cash to service debt, dividends and expenses
Companies that generate healthy profit may be unable to convert profits into cash
Cash flow ratios help the analyst assess the long-term profitability of a firm
Both (a) and (b)
Both (a) and (b)
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ABC Ltd. has a Current Ratio of 1.5: 1 and Net Current Assets of Rs. 5,00,000. What are the Current Assets:A. Rs. 5,00,000
B. Rs. 10,00,000
C. Rs. 15,00,000
D. Rs. 25,00,000
Dividend Payout Ratio is:
A. C
B. DPS รโข EPS
C. Pref. Dividend รโข PAT
D. Pref. Dividend รโข Equity Dividend
The money markets deal with:
A. Securities with a life of more than one year
B. short-term securities
C. Securities such as common stock
D. None of these
Traditional approach confines finance function only to ______ funds.
A. Raising
B. Mobilizing
C. Utilizing
D. Financing
Short “โ term interest rates, in a normal economy, are generally ___________ than long “โ term rates:
A. Higher
B. The same
C. Lower
D. None of the above
Insufficient working capital results in:
A. Block of cash
B. Loosing interests
C. Lack of production
D. Lack of smooth flow of production
Financial Management is mainly concerned with _______:
A. arrangement of funds
B. all aspects of acquiring and utilizing financial resources for firm’s activities
C. efficient Management of every business
D. profit maximization
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