761. The risk averse prefers debt instruments, while the risk seekers go for ________.
A.Equity investments.
B.Preference investments.
C.Debt investments.
D.None of these.

762. When capital market is booming, firms can take market route to ________.
A.Raise capital.
B.Decrease capital.
C.Stop growing.
D. Stagnate.

763. __________ is the expected cash dividend that is normally paid to shareholders.
A.Stock split.
B.Stock dividend.
C.Extra dividend.
D.Regular dividend.

764. The __________ is the proportion of earnings that are paid to common shareholders in the form of a cash dividend.
A.Retention rate.
B.1 plus the retention rate.
C.Growth rate.
D.Dividend pay-outratio

765. A method of budgeting that estimates todays value of money to be received in the future; It is discounted due to the uncertainty of its true value in the future and for the cost of the capital is______________.
A. Cash inflow.
B. Cash outflow.
C. Discounted cash flow.
D.Payback period

766. The field of finance is closely related to the fields of _________.
A.Statistics and economics.
B.Statistics and risk analysis.
C.Economics and accounting.
D.Accounting and comparative return analysis.

767. The ultimate measure of performance is _____________.
A.Amount of the firm’s earnings.
B.The how the earnings are valued by the investor.
C.The firm’s profit margin.
D.Return on the firm’s total assets.

768. Whichof the following are not among the daily activities of financial management?
A.Sale of shares and bonds.
B.Credit management.
C.Inventory control.
D.The receipt and disbursement of funds.

769. A main benefit to the corporate form of organization is __________.
A.Double taxation of corporate income.
B.Simplicity of decision making and low organizational complexity.
C.Limited liability for the corporate shareholders.
D.Amajor management role exists for the firm’s owners.

770. Capitalis allocated by financial markets by _______________.
A.Alottery system between investment dealers.
B.Pricing securities based on their risk and expected future cash flows
C. By pricing risky securities higher than low-risk securities.
D .By a government risk-rating system based on AAA for low risk and CCC for high risk

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