Financial management

of EBIT is:" class="read-more button" href="https://exam.pscnotes.com/mcq/financial-break-even-level-of-ebit-is/#more-45334">Detailed SolutionFinancial break-even level of EBIT is:

3. Which of the following is/are false regarding capital structure theory as stated by Miller and Modigliani? 1) If agency costs are considered, the expected agency costs increases as the debt-equity ratio decreases. 2) With the given assumptions, there is no optimal capital structure. 3) In the presence of taxes, the market value of the firm decreases by the tax shield of debt

Only 1st statement
Only 2nd statement
Both 1st and 3rd statements
All the three statements.

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Modigliani? 1) If agency costs are considered, the expected agency costs increases as the debt-equity ratio decreases. 2) With the given assumptions, there is no optimal capital structure. 3) In the presence of
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taxes, the market value of the firm decreases by the tax shield of debt" class="read-more button" href="https://exam.pscnotes.com/mcq/which-of-the-following-is-are-false-regarding-capital-structure-theory-as-stated-by-miller-and-modigliani-1-if-agency-costs-are-considered-the-expected-agency-costs-increases-as-the-debt-equity-rat/#more-45327">Detailed SolutionWhich of the following is/are false regarding capital structure theory as stated by Miller and Modigliani? 1) If agency costs are considered, the expected agency costs increases as the debt-equity ratio decreases. 2) With the given assumptions, there is no optimal capital structure. 3) In the presence of taxes, the market value of the firm decreases by the tax shield of debt

4. Cash discount terms offered by trade creditors never be accepted because:

Benefit in very small
Cost is very high
No sense to pay earlier
None of the above

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trade creditors never be accepted because:" class="read-more button" href="https://exam.pscnotes.com/mcq/cash-discount-terms-offered-by-trade-creditors-never-be-accepted-because/#more-45277">Detailed SolutionCash discount terms offered by trade creditors never be accepted because:

5. Portfolio weights are found by_________________.

dividing standard deviation by expected value
calculating the percentage each asset is to the total portfolio value
calculating the return of each asset to total portfolio return
dividing expected value by the standard deviation

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found by_________________." class="read-more button" href="https://exam.pscnotes.com/mcq/portfolio-weights-are-found-by_________________/#more-45262">Detailed SolutionPortfolio weights are found by_________________.

6. Value of stock is Rs 400 and required rate of return is 20% then preferred dividend would be

Rs 80.00
Rs 8,000.00
Rs 20.00
Rs 50.00

Detailed SolutionValue of

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124.1c-6.3-23.7-24.8-42.3-48.3-48.6C458.8 64 288 64 288 64S117.2 64 74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z"/> Subscribe on YouTube

stock is Rs 400 and required rate of return is 20% then preferred dividend would be

7. What is the most appropriate goal of the firm?

Shareholder wealth maximization
Profit maximization
Stakeholder maximization
EPS maximization

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class="read-more button" href="https://exam.pscnotes.com/mcq/what-is-the-most-appropriate-goal-of-the-firm/#more-45254">Detailed SolutionWhat is the most appropriate goal of the firm?

8. An outstanding bonds are also classified as

standing bonds
outdated bonds
dated bonds
seasoned bonds

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button" href="https://exam.pscnotes.com/mcq/an-outstanding-bonds-are-also-classified-as/#more-45208">Detailed SolutionAn outstanding bonds are also classified as

9. Good inventory management is good ________ management.

financial
Marketing
stock
purchasing

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href="https://exam.pscnotes.com/mcq/good-inventory-management-is-good-________-management/#more-45200">Detailed SolutionGood inventory management is good ________ management.

10. An inventory recording in balance sheet includes

First in first out
Last in first out
last in last out
Both A and B

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in balance sheet includes" class="read-more button" href="https://exam.pscnotes.com/mcq/an-inventory-recording-in-balance-sheet-includes/#more-45196">Detailed SolutionAn inventory recording in balance sheet includes
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