Ratio Analysis MCQs 2026

Net Present Value of an investment is positive when

1. Adiscounted cash inflows exceed initial outlay✓
2. BIRR is below zero only✓
3. Cpayback is infinite✓
4. Dbook profit is zero✓

Bond analysis 31: face Rs 1000, coupon 9%, price Rs 1090. Current yield is approximately

1. A8.3%✓
2. B9%✓
3. C15%✓
4. D4.2%✓

Bond analysis 29: face Rs 1000, coupon 17%, price Rs 1134. Current yield is approximately

1. A17%✓
2. B23%✓
3. C7.5%✓
4. D15%✓

Bond analysis 61: face Rs 1000, coupon 13%, price Rs 1330. Current yield is approximately

1. A13%✓
2. B19%✓
3. C4.9%✓
4. D9.8%✓

Bond analysis 59: face Rs 1000, coupon 21%, price Rs 1374. Current yield is approximately

1. A21%✓
2. B27%✓
3. C7.7%✓
4. D15.3%✓

Bond analysis 27: face Rs 1000, coupon 15%, price Rs 1088. Current yield is approximately

1. A13.8%✓
2. B15%✓
3. C21%✓
4. D6.9%✓

Bond analysis 33: face Rs 1000, coupon 12%, price Rs 1136. Current yield is approximately

1. A10.6%✓
2. B12%✓
3. C18%✓
4. D5.3%✓

Investment metric 26: P/B ratio on PSX listed stock helps investors

1. Acalculate factory machine depreciation only✓
2. Bmeasure warehouse humidity levels✓
3. Cdetermine employee annual leave balance✓
4. Dassess market valuation relative to book equity✓

Bond analysis 25: face Rs 1000, coupon 13%, price Rs 1042. Current yield is approximately

1. A12.5%✓
2. B13%✓
3. C19%✓
4. D6.3%✓

Bond analysis 23: face Rs 1000, coupon 10%, price Rs 1086. Current yield is approximately

1. A10%✓
2. B9.2%✓
3. C16%✓
4. D4.6%✓

Bond analysis 21: face Rs 1000, coupon 8%, price Rs 1040. Current yield is approximately

1. A8%✓
2. B14%✓
3. C7.7%✓
4. D3.9%✓

Bond analysis 19: face Rs 1000, coupon 16%, price Rs 994. Current yield is approximately

1. A16.1%✓
2. B16%✓
3. C22%✓
4. D8.1%✓

Bond analysis 17: face Rs 1000, coupon 14%, price Rs 1038. Current yield is approximately

1. A14%✓
2. B20%✓
3. C13.5%✓
4. D6.8%✓

Bond analysis 15: face Rs 1000, coupon 11%, price Rs 992. Current yield is approximately

1. A11%✓
2. B17%✓
3. C5.5%✓
4. D11.1%✓

Bond analysis 13: face Rs 1000, coupon 9%, price Rs 946. Current yield is approximately

1. A9%✓
2. B15%✓
3. C4.8%✓
4. D9.5%✓

Bond analysis 11: face Rs 1000, coupon 7%, price Rs 990. Current yield is approximately

1. A7%✓
2. B7.1%✓
3. C13%✓
4. D3.5%✓

Bond analysis 9: face Rs 1000, coupon 15%, price Rs 944. Current yield is approximately

1. A15%✓
2. B21%✓
3. C15.9%✓
4. D8.0%✓

Bond analysis 5: face Rs 1000, coupon 10%, price Rs 942. Current yield is approximately

1. A10%✓
2. B16%✓
3. C5.3%✓
4. D10.6%✓

Bond analysis 3: face Rs 1000, coupon 8%, price Rs 896. Current yield is approximately

1. A8%✓
2. B14%✓
3. C8.9%✓
4. D4.5%✓

Bond analysis 1: face Rs 1000, coupon 6%, price Rs 850. Current yield is approximately

1. A6%✓
2. B12%✓
3. C3.5%✓
4. D7.1%✓

Dividend discount model values stock as

1. Abook value of plant only✓
2. Blast trade volume only✓
3. Cauditor opinion letter✓
4. Dpresent value of expected future dividends✓

P/E ratio interpretation for investment analysis

1. Adebt to equity only✓
2. Bmarket price per share relative to earnings per share✓
3. Cinventory turnover only✓
4. Dtax rate only✓

Duration measures bond price sensitivity to

1. Achanges in CEO tenure✓
2. Bchanges in inventory days✓
3. Cchanges in union membership✓
4. Dchanges in interest rates✓

Yield to maturity on a bond is

1. Acoupon rate always✓
2. Bdiscount rate equating price to present value of cash flows✓
3. Ccurrent yield always✓
4. Dinflation rate only✓

Bond current yield equals

1. Aannual coupon divided by current market price✓
2. Bcoupon divided by face value only✓
3. CYTM exactly always✓
4. Dface value divided by price✓

Expected return on a portfolio equals

1. Asum of betas only✓
2. Bmaximum single stock return✓
3. Cweighted average of individual asset expected returns✓
4. Dminimum bond yield only✓

Holding period return on a stock equals

1. Aonly closing price✓
2. Bcapital gain plus dividends divided by beginning price✓
3. Conly trading volume✓
4. Donly P/E ratio✓

Bond analysis 43: face Rs 1000, coupon 13%, price Rs 1186. Current yield is approximately

1. A13%✓
2. B19%✓
3. C11%✓
4. D5.5%✓

Bond analysis 41: face Rs 1000, coupon 11%, price Rs 1230. Current yield is approximately

1. A11%✓
2. B17%✓
3. C8.9%✓
4. D4.5%✓

Bond analysis 39: face Rs 1000, coupon 18%, price Rs 1184. Current yield is approximately

1. A18%✓
2. B15.2%✓
3. C24%✓
4. D7.6%✓

Bond analysis 37: face Rs 1000, coupon 16%, price Rs 1138. Current yield is approximately

1. A14.1%✓
2. B16%✓
3. C22%✓
4. D7.0%✓

Bond analysis 35: face Rs 1000, coupon 14%, price Rs 1182. Current yield is approximately

1. A14%✓
2. B20%✓
3. C11.8%✓
4. D5.9%✓

Bond analysis 7: face Rs 1000, coupon 12%, price Rs 898. Current yield is approximately

1. A12%✓
2. B13.4%✓
3. C18%✓
4. D6.7%✓

Investment metric 58: earnings yield on PSX listed stock helps investors

1. Aexpress earnings as return percentage on price✓
2. Bcalculate factory machine depreciation only✓
3. Cmeasure warehouse humidity levels✓
4. Ddetermine employee annual leave balance✓

Bond analysis 57: face Rs 1000, coupon 19%, price Rs 1328. Current yield is approximately

1. A19%✓
2. B25%✓
3. C14.3%✓
4. D7.2%✓

Bond analysis 55: face Rs 1000, coupon 16%, price Rs 1282. Current yield is approximately

1. A16%✓
2. B22%✓
3. C6.3%✓
4. D12.5%✓

Bond analysis 53: face Rs 1000, coupon 14%, price Rs 1326. Current yield is approximately

1. A10.6%✓
2. B14%✓
3. C20%✓
4. D5.3%✓

Bond analysis 51: face Rs 1000, coupon 12%, price Rs 1280. Current yield is approximately

1. A9.4%✓
2. B12%✓
3. C18%✓
4. D4.7%✓

Bond analysis 49: face Rs 1000, coupon 20%, price Rs 1234. Current yield is approximately

1. A20%✓
2. B26%✓
3. C8.1%✓
4. D16.2%✓

Investment metric 48: price-to-sales on PSX listed stock helps investors

1. Acompare market cap to revenue for growth firms✓
2. Bcalculate factory machine depreciation only✓
3. Cmeasure warehouse humidity levels✓
4. Ddetermine employee annual leave balance✓

Bond analysis 47: face Rs 1000, coupon 17%, price Rs 1278. Current yield is approximately

1. A13.3%✓
2. B17%✓
3. C23%✓
4. D6.7%✓

Bond analysis 45: face Rs 1000, coupon 15%, price Rs 1232. Current yield is approximately

1. A15%✓
2. B12.2%✓
3. C21%✓
4. D6.1%✓