Financial management Archives

21. In weighted average cost of capital, a company can affect its capital cost through

policy of capital structure

policy of dividends

policy of investment

all of above

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its capital cost through" class="read-more button" href="https://exam.pscnotes.com/mcq/in-weighted-average-cost-of-capital-a-company-can-affect-its-capital-cost-through/#more-48343">Detailed Solution

22. Rate denoted as r* is best classified as

real risk-free interest rate

real-risk free nominal rate

real-risk free quoted rate

real-risk free nominal premium

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23. Process of calculating future value of money from present value is classified as

compounding

discounting

money value

stock value

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24. Pricing model approach in which it is assumed that stock price can have one of two values of stock is classified as

valued approach

marketability approach

stock approach

binomial approach

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Detailed SolutionPricing model approach in which

it is assumed that stock price can have one of two values of stock is classified as

25. In MM Model with taxes, where ‘r’ is the interest rate, ‘D’ is the total debt and ‘t’ is tax rate, then present valued shields would be:

r Ã D Ã t

r Ã D

D Ã t

$$rac{{ ext{D} imes ext{r}}}{{ ext{l} - ext{t}}}$$

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Detailed SolutionIn MM Model with taxes, where ‘r’ is the interest rate, ‘D’ is the total debt

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

and ‘t’ is tax rate, then present valued shields would be:

26. Marginal cost of capital is the cost of:

Additional Sales

Additional Funds

Additional Interests

None of the above

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27. Student loans, mortgages and car loans are examples of

lump sum amount

deferred annuity

annuity due

payment fixed series

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28. In India, Commercial Papers are issued as per the guidelines issued by:

Securities and Exchange Board of India

Reserve Bank of India

Forward Market Commission

None of the above

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81.2z"/> Subscribe on YouTube title="In India, Commercial Papers are issued as per the guidelines issued by:" class="read-more button" href="https://exam.pscnotes.com/mcq/in-india-commercial-papers-are-issued-as-per-the-guidelines-issued-by/#more-48198">Detailed Solution