Financial management

41. In weighted average capital, capital structure weights estimation does not rely on value of

investor's equity
market value of equity
book value of equity
stock equity

Detailed SolutionIn

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weighted average capital, capital structure weights estimation does not rely on value of

42. If coupon rate is less than going rate of interest then bond will be sold

seasoned par value
more than its par value
seasoned par value
at par value

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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

Rs 25,000.00
Rs 28,000.00
Rs 33,600.00
Rs 30,000.00

Detailed SolutionAn initial cost is Rs 6000 and probability index

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is 5.6 then present value of cash flows will be

44. Which of the following is not used in Capital Budgeting?

Time Value of Money
Sensitivity Analysis
Net Assets Method
Cash Flows

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button" href="https://exam.pscnotes.com/mcq/which-of-the-following-is-not-used-in-capital-budgeting/#more-56250">Detailed SolutionWhich of the following is not used in Capital Budgeting?

45. Present value takes _________.

Discounting rate
Compounding rate
Inflation rate
Deflation rate

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class="read-more button" href="https://exam.pscnotes.com/mcq/present-value-takes-_________/#more-56212">Detailed SolutionPresent value takes _________.

46. Walter’s Model suggests that a firm can always increase i.e., of the share by:

Increasing Dividend
Decreasing Dividend
Constant Dividend
None of the above

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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 increase i.e., of the share by:" class="read-more button" href="https://exam.pscnotes.com/mcq/walters-model-suggests-that-a-firm-can-always-increase-i-e-of-the-share-by/#more-56197">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

Rs 500.00
Rs 2,500.00
Rs 650.00
Rs 6,500.00

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Rs 1500 and salvage cash flow is Rs 3000 then free cash flow would be" class="read-more button" href="https://exam.pscnotes.com/mcq/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/#more-56196">Detailed SolutionAn investment outlay cash flow is Rs 2000, an operating cash
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flow is Rs 1500 and salvage cash flow is Rs 3000 then free cash flow would be

48. Higher FL is related the use of:

Higher Equity
Higher Debt
Lower Debt
Variable Cost

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64 288 64S117.2 64 74.6 75.5c-23.5 6.3-42 24.9-48.3 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 button" href="https://exam.pscnotes.com/mcq/higher-fl-is-related-the-use-of/#more-56184">Detailed SolutionHigher FL is related the use of:

49. According to the _______ model, the dividend decision is irrelevant.

MM
Garden
Walter
XY

Detailed

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SolutionAccording to the _______ model, the dividend decision is irrelevant.

50. If a firm has no debt, which one is correct?

OL is one
FL is one
OL is zero
FL is zero

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64 288 64 288 64S117.2 64 74.6 75.5c-23.5 6.3-42 24.9-48.3 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 class="read-more button" href="https://exam.pscnotes.com/mcq/if-a-firm-has-no-debt-which-one-is-correct/#more-56175">Detailed SolutionIf a firm has no debt, which one is correct?

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