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ACCA Financial Management FM Exam Practice Questions 2023 - Part 15

Mary Mary Smith
03 Mar 2023
1 min
0

1. ________ form of market efficiency states that current security prices fully reflect all information, both public and private.

A) Weak.
B) Semi-strong.
C) Strong
D) Flexible



2. ____________ is the minimum required rate of earnings or the cut off rate of capital expenditure.

A) Cost of capital.
B) Working capital
C) Equity capital.
D) None of the above.



3. The project can be selected if its profitability index is more than ______.

A) 1%.
B) 3%.
C) 5%.
D) 10%.



4. To increase the given present value, the discounted rate should be adjusted

A) Upward.
B) Downward
C) No change.
D) Constant.



5. ____________ of different sources of capital influences capital structure.

A) Restrictive covenants.
B) Tax advantage.
C) Cost of capital.
D) Trading on equity.



1. Right Answer: C
Explanation:

2. Right Answer: A
Explanation:

3. Right Answer: A
Explanation:

4. Right Answer: B
Explanation:

5. Right Answer: C
Explanation:

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