[amp_mcq option1=”Cost of Equity” option2=”Cost of Debt” option3=”WACC & kd” option4=”ke and kd” correct=”option1″]
Detailed SolutionIn Net Operating Income Approach, which one of the following is constant?
Financial management
12. Third step in binomial approach of option pricing is to
[amp_mcq option1=”equalize beginning price” option2=”equalize range of payoffs” option3=”equalize domain of payoff” option4=”equalize ending price” correct=”option3″]
Detailed SolutionThird step in binomial approach of option pricing is to
13. Which of the following is not true for capital budgeting?
[amp_mcq option1=”Sunk costs are ignored” option2=”Opportunity costs are excluded” option3=”Incremental cash flows are considered” option4=”Relevant cash flows are considered” correct=”option1″]
Detailed SolutionWhich of the following is not true for capital budgeting?
14. Which of the following methods does a firm resort to avoid dividend payments?
[amp_mcq option1=”Share splitting” option2=”Declaring bonus shares” option3=”Rights issue” option4=”New issue” correct=”option4″]
Detailed SolutionWhich of the following methods does a firm resort to avoid dividend payments?
15. Financial analysts, working capital means the same thing as __________.
[amp_mcq option1=”total assets” option2=”fixed assets” option3=”current assets” option4=”current assets minus current Liabilities” correct=”option4″]
Detailed SolutionFinancial analysts, working capital means the same thing as __________.
16. Real rate of return, risk and expected inflation are primary determinants of
[amp_mcq option1=”minimum rate of return” option2=”accepted return” option3=”expected return” option4=”real risk free rate” correct=”option3″]
Detailed SolutionReal rate of return, risk and expected inflation are primary determinants of
17. Variability for expected returns for projects is classified as
[amp_mcq option1=”expected risk” option2=”stand-alone risk” option3=”variable risk” option4=”returning risk” correct=”option2″]
Detailed SolutionVariability for expected returns for projects is classified as
18. In capital budgeting, number of non-normal cash flows have internal rate of returns are
[amp_mcq option1=”one” option2=”multiple” option3=”accepted” option4=”non-accepted” correct=”option2″]
19. In Capital Budgeting, Sunk cost is excluded because it is:
[amp_mcq option1=”of small amount” option2=”not incremental” option3=”not reversible” option4=”All of the above” correct=”option3″]
Detailed SolutionIn Capital Budgeting, Sunk cost is excluded because it is:
20. A discount rate which equals to present value of TV to project cost present value is classified as
[amp_mcq option1=”negative internal rate of return” option2=”modified internal rate of return” option3=”existed internal rate of return” option4=”relative rate of return” correct=”option1″]