**631. Ratios which relate firm’s stock to its book value per share, cash flow and earnings are classified as_________?**

A. Return ratios

**B. Market value ratios**

C. Marginal ratios

D. Equity ratios

**632. An equation in which total assets are multiplied to profit margin is classified as_____________?**

**A. Du DuPont equation**

B. Turnover equation

C. Preference equation

D. Common equation

**633. In capital budgeting, term of bond which has great sensitivity to interest rates is______________?**

**A. Long-term bonds**

B. Short-term bonds

C. Internal term bonds

D. External term bonds

**634. Price earning ratio and price by cash flow ratio are classified as___________?**

A. Marginal ratios

B. Equity ratios

C. Return ratios

**D. Market value ratios**

**635. High price to earning ratio shows company’s_____________?**

A. Low dividends paid

B. High risk prospect

**C. High growth prospect**

D. High marginal rate

**636. Process of comparing company results with other leading firms is considered as____________?**

A. Comparison

B. Analysis

**C. Bench marking**

D. Return analysis

**637. An equity multiplier is multiplied to return on assets to calculate_________?**

**A. Return on assets**

B. Return on multiplier

C. Return on turnover

D. Return on stock

**638. A project whose cash flows are more than capital invested for rate of return then net present value will be___________?**

**A. Positive**

B. Independent

C. Negative

D. Zero

**639. In mutually exclusive projects, project which is selected for comparison with others must have____________?**

**A. Higher net present value**

B. Lower net present value

C. Zero net present value

D. All of above

**640. Profitability index in capital budgeting is used for_________?**

A. Negative projects

B. Relative projects

**C. Evaluate projects**

D. Earned projects

**NOTE IF YOU THINK ANY OF THE MCQ ABOVE IS WRONG. PLEASE COMMENT WITH CORRECT ANSWER AND ITS DETAIL EXPLANATION IN COMMENT BOX. THANK YOU**

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