Financial management Archives - Page 5 of 112 - MCQ and Quiz for Exams

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 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

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

Detailed SolutionAn initial cost is Rs 6000 and probability index 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

Detailed SolutionWhich of the following is not used in Capital Budgeting?

45. Present value takes _________.

Discounting rate

Compounding rate

Inflation rate

Deflation rate

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

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

Detailed SolutionAn 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

48. Higher FL is related the use of:

Higher Equity

Higher Debt

Lower Debt

Variable Cost

Detailed SolutionHigher FL is related the use of:

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

MM

Garden

Walter

XY

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

Detailed SolutionIf a firm has no debt, which one is correct?

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