[amp_mcq option1=”Higher equity is better” option2=”Higher debt is better” option3=”Debt ratio is irrelevant” option4=”None of the above” correct=”option4″]
Detailed SolutionWhich of the following is true for Net Income Approach?
Financial management
42. An unlimited liability is classified as liabilities of the
[amp_mcq option1=”limited partners” option2=”general partners” option3=”venture partners” option4=”corporate partners” correct=”option2″]
Detailed SolutionAn unlimited liability is classified as liabilities of the
43. Price per share is Rs 25 and cash flow per share is Rs 6 then price to cash flow ratio would be
[amp_mcq option1=”0.24 times” option2=”4.16 times” option3=”4.16%” option4=”24.00%” correct=”option2″]
44. Relevant information about stock market price if it is given, then this price is called
[amp_mcq option1=”market price” option2=”intrinsic price” option3=”extrinsic price” option4=”unstable price” correct=”option1″]
45. Earnings that are not paid as dividends to stockholders and have cumulative amount are classified as
[amp_mcq option1=”non-paid earnings” option2=”common earnings” option3=”retained earnings” option4=”preferred earnings” correct=”option3″]
46. In capital budgeting, a negative net present value results in
[amp_mcq option1=”zero economic value added” option2=”percent economic value added” option3=”negative economic value added” option4=”positive economic value added” correct=”option3″]
Detailed SolutionIn capital budgeting, a negative net present value results in
47. Value of free cash flows Rs55000, operating cost and taxes Rs30000, then value of sales revenues (in Rs) will be
[amp_mcq option1=”Rs 25,000.00″ option2=”Rs 85,000.00″ option3=”Rs 35,000.00″ option4=”Rs 45,000.00″ correct=”option3″]
48. Investment bankers operate in the______________.
[amp_mcq option1=”primary market” option2=”secondary market” option3=”A and B both” option4=”None of above” correct=”option3″]
Detailed SolutionInvestment bankers operate in the______________.
49. In case the firm is all-equity financed, WACC would be equal to:
[amp_mcq option1=”Cost of Debt” option2=”Cost of Equity” option3=”Neither A nor B” option4=”Both A and B” correct=”option3″]
Detailed SolutionIn case the firm is all-equity financed, WACC would be equal to:
50. Arbitrage is the level processing technique introduced in _________.
[amp_mcq option1=”Net income approach” option2=”MM approach” option3=”Operating approach” option4=”Traditional approach” correct=”option3″]
Detailed SolutionArbitrage is the level processing technique introduced in _________.