[amp_mcq option1=”investor’s equity” option2=”market value of equity” option3=”book value of equity” option4=”stock equity” correct=”option2″]
Financial management
42. If coupon rate is less than going rate of interest then bond will be sold
[amp_mcq option1=”seasoned par value” option2=”more than its par value” option3=”seasoned par value” option4=”at par value” correct=”option2″]
Detailed SolutionIf coupon rate is less than going rate of interest then bond will be sold
43. An initial cost is Rs 6000 and probability index is 5.6 then present value of cash flows will be
[amp_mcq option1=”Rs 25,000.00″ option2=”Rs 28,000.00″ option3=”Rs 33,600.00″ option4=”Rs 30,000.00″ correct=”option3″]
44. Which of the following is not used in Capital Budgeting?
[amp_mcq option1=”Time Value of Money” option2=”Sensitivity Analysis” option3=”Net Assets Method” option4=”Cash Flows” correct=”option3″]
Detailed SolutionWhich of the following is not used in Capital Budgeting?
45. Present value takes _________.
[amp_mcq option1=”Discounting rate” option2=”Compounding rate” option3=”Inflation rate” option4=”Deflation rate” correct=”option1″]
46. Walter’s Model suggests that a firm can always increase i.e., of the share by:
[amp_mcq option1=”Increasing Dividend” option2=”Decreasing Dividend” option3=”Constant Dividend” option4=”None of the above” correct=”option1″]
Detailed SolutionWalter’s Model suggests that a firm can always increase i.e., of the share by:
47. An investment outlay cash flow is Rs 2000, an operating cash flow is Rs 1500 and salvage cash flow is Rs 3000 then free cash flow would be
[amp_mcq option1=”Rs 500.00″ option2=”Rs 2,500.00″ option3=”Rs 650.00″ option4=”Rs 6,500.00″ correct=”option2″]
48. Higher FL is related the use of:
[amp_mcq option1=”Higher Equity” option2=”Higher Debt” option3=”Lower Debt” option4=”Variable Cost” correct=”option1″]
49. According to the _______ model, the dividend decision is irrelevant.
[amp_mcq option1=”MM” option2=”Garden” option3=”Walter” option4=”XY” correct=”option1″]
Detailed SolutionAccording to the _______ model, the dividend decision is irrelevant.
50. If a firm has no debt, which one is correct?
[amp_mcq option1=”OL is one” option2=”FL is one” option3=”OL is zero” option4=”FL is zero” correct=”option3″]
Detailed SolutionIf a firm has no debt, which one is correct?