II BCOM PA[ ] SEMESTER - IV Core: FINANCIAL MANAGEMENT - 418A Multiple Choice Questions.

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1 Dr.G.R.Damodaran College of Science (Autonomous, affiliated to the Bharathiar University, recognized by the UGC)Reaccredited at the 'A' Grade Level by the NAAC and ISO 9001:2008 Certified CRISL rated 'A' (TN) for MBA and MIB Programmes II BCOM PA[ ] SEMESTER - IV Core: FINANCIAL MANAGEMENT - 418A Multiple Choice Questions. 1. The only feasible purpose of financial management is A. Wealth Maximization B. Sales Maximization C. Profit Maximization D. Assets maximization 2. Financial management process deals with A. Investments B. Financing decisions C. Both a and b D. None of the above 3. Agency cost consists of A. Binding B. Monitoring C. Opportunity and structure cost D. All of the above 4. Finance Function comprises A. Safe custody of funds only B. Expenditure of funds only C. Procurement of finance only D. Procurement & effective use of funds 5. The objective of wealth maximization takes into account A. Amount of returns expected B. Timing of anticipated returns C. Risk associated with uncertainty of returns D. All of the above

2 6. Financial management mainly focuses on A. Efficient management of every business B. Brand dimension C. Arrangement of funds D. All elements of acquiring and using means of financial resources for financial activities 7. If the Present Value of Cash Inflows are greater than the Present Value of Cash Outflows, the project would be A. Accepted B. Rejected with condition C. Rejected with approval D. Rejected 8. Finance functions are A. Planning for funds B. Raising of funds C. Allocation of Resources D. All of the above 9. Investment is the. A. net additions made to the nations capital stocks B. persons commitment to buy a flat or house C. employment of funds on assets to earn returns D. employment of funds on goods and services that are used in production proces 10. The primary goal of the financial management is. A. to maximize the return B. to minimize the risk C. to maximize the wealth of owners D. to maximize profit 11. In his traditional role the finance manager is responsible for. A. proper utilisation of funds B. arrangement of financial resources C. acquiring capital assets of the organization D. Efficient management of capital 12. Market value of the shares are decided by. A. the respective companies B. the investment market C. the government

3 D. shareholders 13. A company may raise capital from the primary market through. A. Public issue B. Rights issue C. Bought out deals D. All of the above 14. A fixed rate of is payable on debentures A. dividend B. commission C. interest D. brokerage 15. According to traditional approach, the average cost of capital. A. Remains constant up to a degree of leverage and rises sharply thereafter with every increase in leverage B. Rises constantly with increase in leverage C. Decrease up to certain point, remains unchanged for moderate increase in leverage and rises beyond a certain point D. Decrease at an increasing rate with increase in leverage 16. The long-run objective of financial management is to. A. maximize earnings per share B. maximize the value of the firm's common stock C. maximize return on investment D. maximize market share 17. dividend promises to pay shareholders at future date A. Scrip B. cash C. stock D. Propoerty 18. is concerned with the maximization of a firm's stock price. A. shareholder wealth maximization B. Profit maximization C. Stakeholder welfare maximization D. EPS maximization 19. Degree of total leverage can be applied in measuring change in.

4 A. EBIT to a percentage change in quantity B. EPS to a percentage change in EBIT C. EPS to a percentage change in quantity D. Quantity to a percentage change in EBIT 20. Investors can normally afford to assume larger risks in the phase of the life- cycle. A. accumulation B. consolidation C. spending D. gifting 21. is the most important investment decision because it determines the risk-return characteristics of the portfolio. A. Hedging B. Market timing C. Performance measurement D. Asset allocationb 22. The value of EBIT at which EPS is equal to zero is known as. A. Break-even point B. Financial break-even point C. Operating break-even point D. Overall break-even point 23. Price per share is Rs 25 and cash flow per share is Rs 6 then price to cash flow ratio would be A times B times C. 4.16% D % 24. Low price for earning ratio is result of A. low risky firms B. high risky firms C. low dividends paid D. high marginal rate 25. Formula such as net income available for common stockholders divided by total assets is used to calculate A. return on total assets B. return on total equity C. return on debt D. return on sales

5 26. Financial securities that can be converted into cash at closing to their book value price are classified as A. inventories B. short-term investments C. cash equivalents D. long-term investments 27. Discounted cash flow analysis is also classified as A. time value of stock B. time value of money C. time value of bonds D. time value of treasury bonds 28. Prices of bonds will be decreased if an interest rates A. rises B. declines C. equals D. none of the above 29. In capital budgeting, a technique which is based upon discounted cash flow is classified as A. net present value method B. net future value method C. net capital budgeting method D. net equity budgeting method 30. Real risk-free rate is applicable when it is expected that there will be A. high inflation B. low inflation C. No inflation D. None of the above 31. Stocks which has lower book for market ratio are considered as A. optimistic B. more risky C. less risky D. pessimistic 32. An individual stock required return is equal to risk free rate plus bearing risk premium is an explanation of A. security market line B. capital market line

6 C. aggregate market line D. beta market line 33. Growth in earnings per share is primarily resultant of growth in A. Dividends B. asset value C. Fundamental value D. yearly value 34. A price for equity is called A. interest rate B. cost of equity C. debt rate D. investment return 35. Risk in which value of investment depends on what happens to foreign exchange rates is classified as A. preferred risk B. exchange rate risk C. country risk D. foreign risk 36. Corporations such as Citigroup, American Express and Fidelity are classified as A. financial services corporations B. common service corporations C. preferred service corporations D. commercial service corporations 37. Financial corporations which serve individual savers and commercial mortgage borrowers are classified as A. savings associations B. loans associations C. preferred and common associations D. savings and loans associations 38. A regulatory body which licenses brokers and oversees traders is classified as A. international firm of auction system B. international association of network dealers C. national firm of equity dealers D. national association of securities dealers 39. Companies take savings as premium, invest in bonds and make payments to beneficiaries are classified

7 as A. debit unions B. life insurance companies C. credit unions D. auto purchases 40. Federal government tax revenues if it exceeds government spending then it is classified as A.. budget surplus B. budget deficit C. Federal Reserve D. federal budget 41. Mutual fund allows investors to sale out their share during any normal trading hours is classified as A. exchange traded fund B. management expense C. money trade fund D. Capital trade fund 42. Step in initial public offering in which hired agents act on behalf of owners is classified as A.. hiring problems B. Agency problems C. corporation internal problems D. corporation external problems 43. Type of financial security in which loans are secured by borrower's property is classified as A. municipal bonds. B. corporate bonds C. U.S treasury bonds D. mortgages 44. In financial markets, period of maturity more than five years of financial instruments is classified as A. intermediate term B..capital term C. short-term D. long-term 45. Type of financial securities that mature in less than a year are classified as A. saving intermediaries B. discounted intermediaries C. money market securities D. capital market securities

8 46. Rate of return which is asked by investors is classified as A. average cost of capital. B. mean cost of capital C. weighted cost of capital D. weighted average cost of capital 47. Type of financial securities that matures in less than a year are classified as A. money market securities B. capital market securities C. saving intermediaries D. discounted intermediaries 48. Markets which bring closer institutions needing funds and with surplus funds are classified as A. financial markets B. corporate institutions C. hedge firms D. retirement planners 49. Sales revenue $90,000, operating taxes $30,000 and operating capital $15,000 then value of free cash flows (in USD) will be A B C D Cost of money is affected by factors which includes A. production opportunities B. risk C. all the above D. inflation 51. Markets in which corporations raise capital for creating market transaction which are classified as A. commercial markets B. residential markets C. primary markets D. consumer credit loans 52.. Notes, mortgages, bonds, stocks, treasury bills and consumer loans are classified as A. financial instruments B. capital assets C. primary assets

9 D. competitive instruments 53. New York Stock Exchange and Nada stock market are classified as types of A. primary stock market B. equity market C. secondary stock market D. public offering market 54. Price for debt is called A. debt rate B. investment return C. discount rate D. interest rate 55.. In corporation characteristics, an easy transferring and division of stock of shares is classified as A. ownership interest transferability B. deceased transferability C. shared division D. deceased division 56.. In financial markets, period of maturity less than one year of financial instruments is classified as A. short term B. long term C. intermediate term D. capital term 57. Condition in which company's imports are more than its exports is classified as A. foreign trade B. foreign trade deficits C. foreign trade surplus D. trade surplus 58. A markets which deals with long-term corporate stocks are classified as A. liquid markets B. short-term markets C. capital markets D. money markets 59.. Bonds issued to individuals by corporations are classified as A. municipal bonds B. corporate bonds.

10 C. U.S treasury bonds D. mortgages 60. Financial security in which there is no default risk and issues by U.S governments is classified as A. U.S treasury bonds B. mortgages C. municipal bonds D. corporate bonds 61. Financial security issues by major banks and risk depends on strength of issuer is classified as A. negotiable certificate of deposit B. mutual funds C. U.S treasury bills D. commercial paper 62.. Financial security kept by non-financial corporations is A. deposit cheque B. distribution cost C. short term treasury bills D. short term capital cost 63.. A retirement plans funded for workers by corporations, administered and commercial banks are classified as A. retirement funds B. pension funds C. future funds D. workers funds 64. Financial security issued by banks operating outside U.S is classified as A. dollar bonds B. euro deposits C. Eurodollar market deposits D. euro bonds 65. Markets which deal with buying and selling of bonds, mortgages, notes and stocks are considered as A. financial instruments B. financial asset markets C. physical asset markets D. easy markets 66. Capital gain expected by stockholders and dividends are included in

11 A. debt rate B. investment return C. interest rate D. cost of equity 67. An attitude of investor towards dealing with risk determines the A. rate of return B. rate of exchange C. rate of intrinsic stock D. rate of extrinsic stock 68. Government spending, if it exceeds federal government tax revenues then it is classified as A. Federal Reserve B. federal budget C. budget surplus D. budget deficit 69.. Financial security with low degree risk and investment held by businesses is classified as A. treasury bills. B. commercial paper C. negotiable certificate of deposit D. money market mutual funds 70. 'New York Stock Exchange' is an example of A. capital markets B. money markets C. liquid markets D. short-term markets 71. A price for equity is called A. interest rate B. cost of equity C. debt rate D. investment return 72. Risk in which value of investment depends on what happens to foreign exchange rates is classified as A. preferred risk B. exchange rate risk C. country risk D. foreign risk

12 73. Markets which deals with high liquid and short term debt securities are classified as A. capital markets B. money markets C. liquid markets D. short-term markets 74. Mutual fund allows investors to sale out their share during any normal trading hours is classified as A. exchange traded fund B. management expense C. money trade fund D. capital trade fund 75. Financial security which is tax exempted and issues by state governments to individuals is classified as A. U.S treasury bonds B. mortgages C. municipal bonds D. corporate bonds 76. To financial analysts, "working capital" means the same thing as. A. total asset B. fixed asset C. current asset D. current assets minus current liabilities 77. Compared to other frms in the industry, a company that maintains aconservative working capital policy will tend to have a A. Greater percentage of short-term fnancing. B. Greater risk of needing to sell current assets to repay debt. C. Higher ratio of current assets to fixed assets D. Higher total asset turnover. 78. A firm following an aggressive working capital strategy would A. Hold substantial amount of fixed assets. B. minimise the amount of short-term borrowing C. fiinance fluctuating assets with long-term fnancing. D. minimise the amount of fun ds held invery liquid assets 79. The working capital fnancing policy that sub)ects the frm to the greatest risk of being unable to meet the frm*s maturing obligations is the policy that fnances A. fluctuating current assets with long-term debt B. permanent current assets with long-term debt. C. permanent current assets with short term debt.

13 D. fluctuating current assets with short-term debt 80. Activities related to coordinating, controlling and planning flow of inventory are classified as A. decisional management B. throughput management C. inventory management D. Mnaufacturing Management 81. The following classes of costs are usually involved in inventory decisions except A. Cost of ordering B. Carrying cost C. Cost of shortages D. Machining cost 82. The cost of insurance and taxes are included in A. Cost of ordering B. Set up cost C. Inventory carrying cost D. Cost of shortages 83. Profit forgone by capital investment in inventory rather than investment of capital to somewhere else is classified as A. relevent purcgase order costs B. relevent inventory carrying costs C. irrelevent inventory carrying costs D. relevent opportunity cost of capital 84. The market price of a share of common stock is determined by A. the board of directors of the firm. B. the stock exchange on which the stock is listed. C. the president of the company. D. individuals buying and selling the stock. 85. is the price at which the bond is traded in the stock exchange. A. Redemption value B. Face value C. Market value D. Maturity value 86. refers to the amount invested in various components of current assets. A. Temporary working capital

14 B. Net working capital C. Gross working capital D. Permanent working capital 87. is the length of time between the firms actual cash expenditure and its own cash receipt A. Net operating cycle B. Cash conversion cycle C. Working capital cycle D. Gross operating cycle 88.. refers to the length of time allowed by a firm for its customers to make payment for their purchases. A. holding period B. pay back period C. average collection period D. Credit period 89. and carry a fixed rate of interest and are to be paid off irrespective of the firms revenues. A. Debentures, Dividends B. Debentures, Bonds C. Dividends, Bonds D. Dividends, Treasury notes 90. Credit policy of every company is largely influenced by and. A. Liquidity, accountability B. Liquidity, profitability C. Liability, profitability D. Liability, liquidity 91. How are earnings per share calculated? A. Use the income statement to determine earnings after taxes (net income) and divide by the previous period's earnings after taxes. Then subtract 1 from the previously calculated value. B. Use the income statement to determine earnings after taxes (net income) and divide by the number of common shares outstanding. C. Use the income statement to determine earnings after taxes (net income) and divide by the number of common and preferred shares outstanding. D. Use the income statement to determine earnings after taxes (net income) and divide by the forecasted period's earnings after taxes. Then subtract 1 from the previously calculated value 92. Which of the following would NOT improve the current ratio? A. Borrow short term to finance additional fixed assets.

15 B. Issue long-term debt to buy inventory. C. Sell common stock to reduce current liabilities. D. Sell fixed assets to reduce accounts payable. 93. Which of the following statements (in general) is correct? A. A low receivables turnover is desirable. B. The lower the total debt-to-equity ratio, the lower the financial risk for a firm. C. An increase in net profit margin with no change in sales or assets means a poor ROI. D. The higher the tax rate for a firm, the lower the interest coverage ratio. 94. A capital investment is one that A. has the prospect of long-term benefits. B. has the prospect of short-term benefits. C. is only undertaken by large corporations. D. applies only to investment in fixed assets. 95. Which of the following would be consistent with a more aggressive approach to financing working capital? A. Financing short-term needs with short-term funds. B. Financing permanent inventory buildup with long-term debt. C. Financing seasonal needs with short-term funds. D. Financing some long-term needs with short-term funds. 96. Which asset-liability combination would most likely result in the firm's having the greatest risk of technical insolvency? A. Increasing current assets while lowering current liabilities. B. Increasing current assets while incurring more current liabilities. C. Reducing current assets, increasing current liabilities, and reducing long-term debt. D. Replacing short-term debt with equity. 97. Which of the following illustrates the use of a hedging (or matching) approach to financing? A. Short-term assets financed with long-term liabilities. B. Permanent working capital financed with long-term liabilities. C. Short-term assets financed with equity. D. All assets financed with 50 percent equity, 50 percent long-term debt mixture In deciding the appropriate level of current assets for the firm, management is confronted with A. a trade-off between profitability and risk. B. a trade-off between liquidity and marketability C. a trade-off between equity and debt. D. a trade-off between short-term versus long-term borrowing.

16 99. Spontaneous financing includes A. accounts receivable. B. accounts payable. C. short-term loans. D. a line of credit Permanent working capital A. varies with seasonal needs. B. includes fixed assets. C. is the amount of current assets required to meet a firm's long-term minimum needs. D. includes accounts payable 101. Financing a long-lived asset with short-term financing would be A. an example of "moderate risk -- moderate (potential) profitability" asset financing B. an example of "low risk -- low (potential) profitability" asset financing. C. an example of "high risk -- high (potential) profitability" asset financing D. an example of the "hedging approach" to financing 102. A firm's inventory turnover (IT) is 5 times on a cost of goods sold (COGS) of $800,000. If the IT is improved to 8 times while the COGS remains the same, a substantial amount of funds is released from or additionally invested in inventory. In fact, A. $160,000 is released. B. $100,000 is additionally invested. C. $60,000 is additionally invested. D. $60,000 is released 103. An increase in the firm's receivable turnover ratio means that: A. it is collecting credit sales more quickly than before. B. cash sales have decreased. C. it has initiated more liberal credit terms. D. inventories have increased A single, overall cost of capital is often used to evaluate projects because: A. it avoids the problem of computing the required rate of return for each investment proposal. B. it is the only way to measure a firm's required return. C. it acknowledges that most new investment projects have about the same degree of risk. D. it acknowledges that most new investment projects offer about the same expected return The cost of equity capital is all of the following EXCEPT: A. the minimum rate that a firm should earn on the equity-financed part of an investment. B. a return on the equity-financed portion of an investment that, at worst, leaves the market price of the

17 stock unchanged. C. by far the most difficult component cost to estimate. D. generally lower than the before-tax cost of debt Market values are often used in computing the weighted average cost of capital because A. this is the simplest way to do the calculation. B. this is consistent with the goal of maximizing shareholder value. C. this is required in the U.S. by the Securities and Exchange Commission. D. this is a very common mistake The term "capital structure" refers to: A. long-term debt, preferred stock, and common stock equity. B. current assets and current liabilities. C. total assets minus liabilities. D. shareholders' equity 108. If the weighting of equity in total capital is 1/3, that of debt is 2/3, the return on equity is 15% that of debt is 10% and the corporate tax rate is 32%, what is the Weighted Average Cost of Capital (WACC)? A % B % C % D % 109. What is the difference between the current ratio and the quick ratio? A. The current ratio includes inventories and the quick ratio does not. B. The current ratio does not include inventories and the quick ratio does. C. The current ratio includes physical capital and the quick ratio does not. D. The current ratio does not include physical capital and the quick ratio does Which of the following working capital strategies is the most aggressive? A. Making greater use of short term finance and maximizing net short term asset. B. Making greater use of long term finance and minimizing net short term asset. C. Making greater use of short term finance and minimizing net short term asset. D. Making greater use of long term finance and maximizing net short term asset Reasons for smaller exposure of foreign exchange than US money center are A. regulations B. prudent individuals C. smaller size of assets D. all of above

18 112. In equilibrium position, spread between foreign and domestic rate of interest must be equal to spread of A. domestic rates B. forward and spot exchange rates C. forward rate D. spot rates 113. An efficient market hypothesis states all public information which is reflected in current market prices is classified as A. weak form efficiency B. strong form efficiency C. market efficiency D. semi strong efficiency 114. An efficient market hypothesis states in which all public or private information is reflected in current market prices is classified as A. market efficiency B. semi strong efficiency C. weak form efficiency D. strong form efficiency 115. Present value of dividends which is expected to be provided in future is classified as an A. Intrinsic value of stock B. extrinsic value of stock C. intrinsic bonds D. extrinsic bonds 116. Information which is reflected in current market prices with help of past price movements is classified as A. market efficiency B. semi strong efficiency C. weak form efficiency D. strong form efficiency 117. Value of future dividends after horizon date is classified as A. hypothesis value B. horizon value C. terminal value D. Both B and C 118. Chapter TwelveMarket Efficiency If a market is inefficient, as new information is received about a security

19 A. nothing will happen B. the stock price will fall at first and then later rise C. there will be a lag in the adjustment of the stock price D. there will be negative demand for the stock 119. Type of risk in which payments are interrupted by intervention of foreign governments is considered as A. channel risk B. globalization risk C. state risk D. country risk 120. Risk arises from trading of assets because of change in asset prices and exchange rates is classified as A. asset risk B. trade risk C. market risk D. exchange risk 121. Risk faced by financial institutions in which advancement of technology does not produce savings in cost is classified as A. savings risk B. advance risk C. cost risk D. technology risk 122. Risk which arises all activities from contingent liabilities and assets is considered as A. Off balance sheet risk B. income statement risk C. balance of trade risk D. balance of payment risk 123. When maturities of liabilities and assets are mismatched and risk incurred by financial intermediaries then this risk is classified as A. Interest rate risk B. channel rate risk C. economic risk D. issuance risk 124. Risk management is responsibility of the A. Customer B. Investor C. Developer

20 D. Project team 125. As a tester which of the following will come under product risk if you are testing an e-commerce website? A. Shortage of testers B. Delay in fixing defects by development team C. Failure to transfer a user to secure gateway while paying D. All of the above 126. An economist will define the exchange rate between two currencies as the: A. Amount of one currency that must be paid in order to obtain one unit of another currency. B. Difference between total exports and total imports within a country. C. Price at which the sales and purchases of foreign goods takes place. D. Ratio of import prices to export prices for a particular country Under a dirty float regime: A. The exchange rate is determined by market forces. B. The exchange rate is unofficially controlled by the central bank. C. The exchange rate is fixed. D. The exchange rate can move between a minimum and maximum level only The Purchasing Power Parity should hold: A. Under a fixed exchange rate regime. B. Under a flexible exchange rate regime. C. Under a dirty exchange rate regime. D. Always The demand for the U.S. dollar in the foreign exchange market is a derived demand, and it is derived from: A. Imports into the U.S. plus any capital inflows into the country. B. Imports into the U.S. plus any capital outflows from the country. C. Exports from the U.S. plus any capital outflows from the country. D. Exports from the U.S. plus any capital inflows into the country Which of the following is NOT a criticism of a flexible exchange rate system? A. Flexible exchange rates tend to be variable and therefore cause more uncertainty. B. Flexible exchange rate systems require discipline on the part of central banks that may not be forthcoming. C. Under flexible exchange rates, trading countries tend to rely more heavily upon tariffs and other restrictions. D. The flexible exchange rate system reduces the power of fiscal policy.

21 131. If the U.K. experiences inflationary prices, then the presence of rising prices will: A. Decrease imports into the country. B. Increase the exports from the country. C. Shift the country's currency supply curve in the foreign exchange market to the right. D. Shift the demand curve for the country's foreign exchange to the right Which one of the following is not included in a nation's current account? A. Merchandise exports B. Long-term capital flow C. Invisible imports D. The importing of services 133. The price of Levi Jeans will be equal across the UK and US under. A. Fixed Exchange Rates B. Floating Exchange Rates C. Perfect Competition D. Purchasing Power Parity 134. All the following statements are correct except: A. An appreciation of the pound relative to the dollar will make UK good less competitive, ceteris paribus B. If inflation in the UK is higher than in the US, there will be real appreciation of the pound, ceteris paribus C. A nominal depreciation of the GBP/USD exchange rate will make the UK more competitive, if domestic and foreign prices do not change. D. If inflation in the UK is 3% and in the US is 2%, an appreciation of the pound of 1% will not change the real exchange rate 135. During planning period, a marginal cost for raising a new debt is classified as A. debt cost B. relevant cost C. borrowing cost D. embedded cost 136. In weighted average cost of capital, a company can affect its capital cost through A. policy of capital structure B. policy of dividends C. policy of investment D. all of above 137. A risk associated with project and way considered by well diversified stockholder is classified as

22 A. expected risk B. beta risk C. industry risk D. returning risk 138. Method uses for an estimation of cost of equity is classified as A. market cash flow B. future cash flow method C. discounted cash flow method D. present cash flow method Bond risk premium is added in to bond yield to calculate the A. cost of American option B. cost of European option C. cost of common stock D. cost of preferred stock 140. A Pure Risk is defined as: A. an event that offer no opportunity for financial gain B. the chance a loss will occur C. a diversifiable risk D. a contingency that increases the chance of a loss 141. Other factors held constant, but lesser project liquidity is because of A. shorter payback period B. greater payback period C. less project return D. greater project return 142. set of projects or set of investments usually maximize firm value is classified as A. Optimal capital budget B. minimum capital budget C. maximum capital budget D. greater capital budget 143. Situation in which firm limits expenditures on capital is classified as A. optimal rationing B. capital rationing C. marginal rationing D. transaction rationing

23 144. An increase in marginal cost of capital and capital rationing are two arising complications of A. maximum capital budget B. greater capital budget C. optimal capital budget D. minimum capital budget 145. Life that maximizes net present value of an asset is classified as A. minimum life B. present value life C. economic life D. transaction life 146. Ratio Analysis can be used to study liquidity, turnover, profitability, etc. of a firm. What does Debt- Equity Ratio help to study? A. Solvency B. Liquidity C. Profitability D. Turnover 147. XYZ Ltd. has a Debt Equity Ratio of 1.5 as compared to 1.3 Industry average. It means that the firm has: A. Higher Liquidity B. Higher Financial Risk C. Higher Profitability D. Higher Capital Employed 148. Return on Assets and Return on Investment Ratios belong to: A. Liquidity Ratios B. Profitability Ratios C. Solvency Ratios D. Turnover 149. Which of the following helps analysing return to equity Shareholders? A. Return on Assets B. Earnings Per Share C. Net Profit Ratio D. Return on Investment There is deterioration in the management of working capital of XYZ Ltd. What does it refer to? A. That the Capital Employed has reduced B. That the Profitability has gone up C. That debtors collection period has increased

24 D. That Sales has decreased Staff Name Vanisree.D.