MGT201 Quiz 4 Solution and Discussion
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____________ refers to the use of debt to acquire additional assets in the business. MGT201
Business risk -
When EBIT to total assets ratio is greater then the interest cost then Financial leveraged is: MGT201
Beneficial -
If there is no relationship between prices of two stocks, then the value of their correlation coefficient is: MGT201
-1.0
0
1.0
Non of given -
How can firms improve their average collection period (ACP)? MGT201
By imposing charges on early payments -
If a firm has ROE < rE, then what impact dividend payout would have on its share price? MGT201
Share price will rise -
Suppose a firm makes 50% of sales on 40 day credit and 50% on 30 day credit; what will be average collection period (ACP) of the firm? MGT201
100 days -
Which of the following is instrument to be traded in money market? MGT201
Bank deposit certificate -
The extent to which fixed cost used in firm’s operations is known as: MGT201 Financial leverage
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Under “cliental effect”, ________ investors invest in high dividend stocks while __________investors invest in low dividend stocks. MGT201
Income, growth