Financial management

771. In weighted average cost of capital, a company can affect its capital cost through

policy of capital structure
policy of dividends
policy of investment
all of above

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affect its capital cost through" class="read-more button" href="https://exam.pscnotes.com/mcq/in-weighted-average-cost-of-capital-a-company-can-affect-its-capital-cost-through/#more-48343">Detailed SolutionIn weighted average cost of capital, a company can affect its capital cost through

772. Rate denoted as r* is best classified as

real risk-free interest rate
real-risk free nominal rate
real-risk free quoted rate
real-risk free nominal premium

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classified as" class="read-more button" href="https://exam.pscnotes.com/mcq/rate-denoted-as-r-is-best-classified-as/#more-48341">Detailed SolutionRate denoted as r* is best classified as

773. Process of calculating future value of money from present value is classified as

compounding
discounting
money value
stock value

Detailed SolutionProcess of calculating

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future value of money from present value is classified as

774. Pricing model approach in which it is assumed that stock price can have one of two values of stock is classified as

valued approach
marketability approach
stock approach
binomial approach

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is classified as" class="read-more button" href="https://exam.pscnotes.com/mcq/pricing-model-approach-in-which-it-is-assumed-that-stock-price-can-have-one-of-two-values-of-stock-is-classified-as/#more-48290">Detailed SolutionPricing model approach in which it is assumed that stock price can have one of two values of stock is classified as

775. In MM Model with taxes, where ‘r’ is the interest rate, ‘D’ is the total debt and ‘t’ is tax rate, then present valued shields would be:

r × D × t
r × D
D × t
$$ rac{{ ext{D} imes ext{r}}}{{ ext{l} - ext{t}}}$$

Detailed SolutionIn MM Model with

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taxes, where ‘r’ is the interest rate, ‘D’ is the total debt and ‘t’ is tax rate, then present valued shields would be:

776. Marginal cost of capital is the cost of:

Additional Sales
Additional Funds
Additional Interests
None of the above

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href="https://exam.pscnotes.com/mcq/marginal-cost-of-capital-is-the-cost-of/#more-48270">Detailed SolutionMarginal cost of capital is the cost of:

777. Student loans, mortgages and car loans are examples of

lump sum amount
deferred annuity
annuity due
payment fixed series

Detailed

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SolutionStudent loans, mortgages and car loans are examples of

778. In India, Commercial Papers are issued as per the guidelines issued by:

Securities and Exchange Board of India
Reserve Bank of India
Forward Market Commission
None of the above

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href="https://exam.pscnotes.com/mcq/in-india-commercial-papers-are-issued-as-per-the-guidelines-issued-by/#more-48198">Detailed SolutionIn India, Commercial Papers are issued as per the guidelines issued by:

779. If a company issues new share capital to redeem debentures, then:

OL will increase
FL will increase
OL will decrease
FL will decrease

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780. Capital Budgeting is a part of:

Investment Decision
Working Capital Management
Marketing Management
Capital Structure

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class="read-more button" href="https://exam.pscnotes.com/mcq/capital-budgeting-is-a-part-of/#more-48156">Detailed SolutionCapital Budgeting is a part of:

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