1. ___________ varies inversely with profitability
A) Liquidity.
B) Risk.
C) Accounts.
D) Trade
2. To financial analysts, 'gross working capital' means the same thing as ________.
A) Fixed assets
B) Current assets.
C) Working capital.
D) Cost of capital.
3. In Walter model formula D stands for _________________.
A) Dividend per share.
B) Direct dividend.
C) Direct earnings.
D) None of these.
4. Current ratio of a concern is 1, its net working capital will be _________.
A) Positive.
B) Neutral.
C) Negative.
D) None of the above.
5. The 182-day annualized T bills rate is 9%p.a., the return on market is 15% p.a., and the beta of stock B is1.5 the required rate of return from investment in stock B is___________.
A) 17% p.a.
B) 18% p.a.
C) 19% p.a.
D) 20% p.a.