Financial management
investor's equity
market value of equity
book value of equity
stock equity
Answer is Right!
Answer is Wrong!
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
Answer is Right!
Answer is Wrong!
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
Rs 25,000.00
Rs 28,000.00
Rs 33,600.00
Rs 30,000.00
Answer is Right!
Answer is Wrong!
44. Which of the following is not used in Capital Budgeting?
Time Value of Money
Sensitivity Analysis
Net Assets Method
Cash Flows
Answer is Right!
Answer is Wrong!
Detailed SolutionWhich of the following is not used in Capital Budgeting?
45. Present value takes _________.
Discounting rate
Compounding rate
Inflation rate
Deflation rate
Answer is Right!
Answer is Wrong!
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
Answer is Right!
Answer is Wrong!
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
Answer is Right!
Answer is Wrong!
48. Higher FL is related the use of:
Higher Equity
Higher Debt
Lower Debt
Variable Cost
Answer is Right!
Answer is Wrong!
49. According to the _______ model, the dividend decision is irrelevant.
MM
Garden
Walter
XY
Answer is Right!
Answer is Wrong!
Detailed 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
Answer is Right!
Answer is Wrong!
Detailed SolutionIf a firm has no debt, which one is correct?