46. "Shareholder wealth" in a firm is represented by
the number of people employed in the firm.
the book value of the firm's assets less the book value of its liabilities.
the amount of salary paid to its employees.
the market price per share of the firm's common stock.
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47. Which statement is true about Financial Management?
An option is a claim without any liability
The wealth of a firm is defined as the market price of the firm's stock
The maximisation of profit is often considered as an implies objective of a firm
All of the above
48. In the context of imperfect and asymmetric information, how does the stock market react to the signal of a cut in dividend by a company?
The market sells, share price is lowered
The market buys, share price is raised.
The market does not react, price remains the same
None of the above.
49. Which is the assumption of Modigliani and Miller approach to cost of capital?
The capital markets are assumed to be perfect
The firms can be classified into homogeneous risk class
All Investor have the same expectations from a firm's net operating income which is necessary to evaluate the value of a firm
50. Which is the function of Treasurer?
Management of Pension
Management of Credit
Management of Cash
UGC NET PAPER 1
UGC NET Management
UGC NET COMPUTER SCIENCE
UGC NET COMMERCE
GATE COMPUTER SCIENCE
CFA Level 1
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