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ACCA Financial Management FM Exam Practice Questions 2023 - Part 16

Mary Mary Smith
03 Mar 2023
1 min
0

1. Financial leverage refers to the rate of change in earnings per share for a given change in earnings ___________________.

A) Before tax.
B) Before interest
C) Before interest and tax
D) After interest and tax



2. ___________ bonds are again superior to ordinary bonds in terms of sale ability.

A) Redeemable
B) Irredeemable.
C) Convertible
D) Non-convertible



3. What method of stock repurchase occurs when the buyer seeks bids within a specified price range and accepts the lowest price that will allow it to acquire the entire block of securities desired?

A) Dutch-auction.
B) Fixed-price.
C) Open-market.
D) Fair-warning.



4. 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.



5. The mix of debt and equity in a firm is referred to as the firm's _______.

A) Primary capital.
B) Capital composition.
C) Cost of capital.
D) Capital structure.



1. Right Answer: C
Explanation:

2. Right Answer: C
Explanation:

3. Right Answer: A
Explanation:

4. Right Answer: B
Explanation:

5. Right Answer: C
Explanation:

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