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
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