12. Altering the leverage ratio does not influence the market value of the firm. This is the basic premise of _______.

net income approach
traditional approach
modern approach
net operating income approach

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of _______." class="read-more button" href="https://exam.pscnotes.com/mcq/altering-the-leverage-ratio-does-not-influence-the-market-value-of-the-firm-this-is-the-basic-premise-of-_______/#more-58261">Detailed SolutionAltering the leverage ratio does not influence the market value of the firm. This is the basic premise of _______.
return and greater variation is indicated by" class="read-more button" href="https://exam.pscnotes.com/mcq/greater-chance-of-lower-actual-return-than-expected-return-and-greater-variation-is-indicated-by/#more-58197">Detailed SolutionGreater chance of lower actual return than expected return and greater variation is indicated by

16. Values recorded as determined in marketplace are considered as

market values
book values
appreciated values
depreciated values

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class="read-more button" href="https://exam.pscnotes.com/mcq/values-recorded-as-determined-in-marketplace-are-considered-as/#more-58172">Detailed SolutionValues recorded as determined in marketplace are considered as

17. A firm has EBIT of Rs. 50,000. Market value of debt is Rs. 80,000 and overall capitalization rate is 20%. Market value of firm under NOI Approach is:

Rs. 2,50,000
Rs. 1,70,000
Rs. 30,000
Rs. 1,30,000

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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 is:" class="read-more button" href="https://exam.pscnotes.com/mcq/a-firm-has-ebit-of-rs-50000-market-value-of-debt-is-rs-80000-and-overall-capitalization-rate-is-20-market-value-of-firm-under-noi-approach-is/#more-58168">Detailed SolutionA firm has EBIT of Rs. 50,000. Market value of debt is Rs. 80,000 and overall capitalization rate is 20%. Market value of firm under NOI Approach is:

18. An increase in value of option leads to low present value of exercise cost only if it has

low volatility
interest rates are high
interest rates are low
high volatility

Detailed SolutionAn increase in value

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

of option leads to low present value of exercise cost only if it has

19. An earning of business which is available for free distribution to all stockholders and creditors is classified as

free cash flows
free distribution
available income
cash income

Detailed SolutionAn earning of business which is

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available for free distribution to all stockholders and creditors is classified as

20. A markets which deals with long-term corporate stocks are classified as

liquid markets
short-term markets
capital markets
money markets

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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 href="https://exam.pscnotes.com/mcq/a-markets-which-deals-with-long-term-corporate-stocks-are-classified-as/#more-58122">Detailed SolutionA markets which deals with long-term corporate stocks are classified as

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