Financial Management MCQs (BBA Finance) From Textbook

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Financial Management Exam MCQs – Practice Test 4 (Chapter 10)

Stocks Valuation and Stock Market Equilibrium Notes Questions with Answers PDF Download – Test 4

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Stocks Valuation & Stock Market Equilibrium MCQs – Practice Test 4 PDF Download

MCQ: 16

The stock market theory which states that stocks are in equilibrium and impossible for investors to beat the market is classified as an

  1. inefficient market hypothesis
  2. efficient market hypothesis
  3. efficient stock hypothesis
  4. inefficient stock hypothesis
MCQ: 17

The growth in earnings per share is primarily resultant of the growth in

  1. dividends
  2. asset value
  3. fundamental value
  4. yearly value
MCQ: 18

In expected rate of return for constant growth, the capital gains is divided by capital gains yield to calculate

  1. returning price
  2. ending price
  3. beginning price
  4. regular price
MCQ: 19

The stock which has fixed payments and failure of payments which do not lead to bankruptcy is classified as

  1. common stock
  2. preferred stock
  3. bonds equity
  4. common shares
MCQ: 20

An efficient market hypothesis states all public information which is reflected in current market prices is classified as

  1. weak form efficiency
  2. strong form efficiency
  3. market efficiency
  4. semi strong efficiency

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