[amp_mcq option1=”policy of capital structure” option2=”policy of dividends” option3=”policy of investment” option4=”all of above” correct=”option4″]
Detailed SolutionIn weighted average cost of capital, a company can affect its capital cost through
Financial management
22. Rate denoted as r* is best classified as
[amp_mcq option1=”real risk-free interest rate” option2=”real-risk free nominal rate” option3=”real-risk free quoted rate” option4=”real-risk free nominal premium” correct=”option1″]
23. Process of calculating future value of money from present value is classified as
[amp_mcq option1=”compounding” option2=”discounting” option3=”money value” option4=”stock value” correct=”option1″]
Detailed SolutionProcess of calculating future value of money from present value is classified as
24. Pricing model approach in which it is assumed that stock price can have one of two values of stock is classified as
[amp_mcq option1=”valued approach” option2=”marketability approach” option3=”stock approach” option4=”binomial approach” correct=”option4″]
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:
[amp_mcq option1=”r à D à t” option2=”r à D” option3=”D à t” option4=”$$\frac{{\text{D} \times \text{r}}}{{\text{l} – \text{t}}}$$” correct=”option3″]
26. Marginal cost of capital is the cost of:
[amp_mcq option1=”Additional Sales” option2=”Additional Funds” option3=”Additional Interests” option4=”None of the above” correct=”option2″]
27. Student loans, mortgages and car loans are examples of
[amp_mcq option1=”lump sum amount” option2=”deferred annuity” option3=”annuity due” option4=”payment fixed series” correct=”option2″]
Detailed SolutionStudent loans, mortgages and car loans are examples of
28. In India, Commercial Papers are issued as per the guidelines issued by:
[amp_mcq option1=”Securities and Exchange Board of India” option2=”Reserve Bank of India” option3=”Forward Market Commission” option4=”None of the above” correct=”option2″]
Detailed SolutionIn India, Commercial Papers are issued as per the guidelines issued by:
29. If a company issues new share capital to redeem debentures, then:
[amp_mcq option1=”OL will increase” option2=”FL will increase” option3=”OL will decrease” option4=”FL will decrease” correct=”option1″]
Detailed SolutionIf a company issues new share capital to redeem debentures, then:
30. Capital Budgeting is a part of:
[amp_mcq option1=”Investment Decision” option2=”Working Capital Management” option3=”Marketing Management” option4=”Capital Structure” correct=”option1″]