MGT502 Quiz 1 Solution and Discussion
MGT502 Quiz 1 Solved
Which of the following is a strategy of risk management that is employed by investors to reduce or minimize the chances of loss? MGT201
The pay out ratio of XYZ Company is 25%. What is its Plow back ratio? MGT201
The measure of retained earnings is known as the retention ratio. The higher the retention ratio is, the lower the payout ratio is. For example, if a company reports a net income of $100,000 and issues $25,000 in dividends, the payout ratio would be $25,000 / $100,000 = 25%.
If ABC Company is taking legal action against a third party for breach of contract and its lawyers are confident of winning this case as well as receiving compensation, then this would be reported as __________ by ABC Company.
Long term asset
Upward sloping yield curve implies that: MGT201
Short-term debt instruments have a lower yield than long-term debt instruments
…is a series of equal payments at the beginning of each period. MGT201
- Ordinary Annuity
An ordinary annuity, also known as deferred annuity, consists of a series of equal payments at the end of
- Ordinary Annuity
Which of the following is the main objective of ‘Economics’? MGT201
Which of the following is not a Profitability ratio? MGT201
Net Profit Margin
An ____________is a series of fixed payments, which might be over a fixed number of years, or over the lifetime of an individual, or both
An annuity is a series of fixed payments, which might be over a fixed number of years, or over
the lifetime of an individual, or both. The commonly known types of annuities we see are the monthly
rent, and monthly mortgage payments, or insurance premiums.
Which of the following document/s is/are used to ? MGT201
- Cash Budget
- Pro Forma Balance Sheet
- Pro Forma Income Statement
All of given
Suppose a company has paid Rs. 50,000 a dividend to its shareholders while net income for the year was Rs. 500,000. What is the payout-ratio of the company?