The appropriate ratio for indicating liquidity crisis is
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Interim cash inflows are reinvested at a rate of return equal to the internal rate of return is the built-in mechanism for
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Match List-I with List-II and select the correct answer:
| List-I | List-II |
| a. Modigliani Miller approach | 1. Commercial papers |
| b. Net operating income approach | 2. Working capital management |
| c. Short-term money market instrument | 3. Capital structure |
| d. Factoring | 4. Arbitrage |
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Which one of the following assumptions is not included in the James E. Walter Valuation model?
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Which of the following is an implicit cost of increasing proportion of debt of a company?
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Indicate the cost of equity capital based on capital asset pricing model with the following information. Beta coefficient 1.40 Risk free rate of interset 9% Expected rate of return on equity in the market 16%
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Profitability index of a project is the ratio of present value of cash inflows to
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Dividend irrelevance hypothesis implied in the
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The international monetary system went through several distinct stages of evolution. These stages are summarised, in alphabetic order, as follows
1. Bimetallism
2. Brettonwoods system
3. Classical gold standard
4. Flexible exchange rate regime
5. Interwar period
The chronological order that they actually occurred is
1. Bimetallism
2. Brettonwoods system
3. Classical gold standard
4. Flexible exchange rate regime
5. Interwar period
The chronological order that they actually occurred is
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If we move from present value to calculate the future value, we can use the concept of compounding rate. If we were to move from future value towards the calculation of present value, the concept used will be
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Positive NPV in project appraised by a firm may not occur an account of
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Match List-I with List-II and select the correct answer:
| List-I | List-II |
| a. Realised yield method | 1. Cost of equity share capital |
| b. Taxation | 2. Cost of equity capital |
| c. Cost of total capital employed | 3. Cost of debt capital |
| d. Dividend growth is a consideration | 4. Weighted cost of capital |
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Which of the following statement(s) is/are false?
1. Capital profits can never be distributed as dividends to the shareholders.
2. Dividends are paid out of profits and, therefore, do not affect the liquidity position of the firm.
3. Every company should follow the policy of low dividend payment.
4. Walter's model suggests that dividend payment dose not affect the market price of the share.
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1. Capital profits can never be distributed as dividends to the shareholders.
2. Dividends are paid out of profits and, therefore, do not affect the liquidity position of the firm.
3. Every company should follow the policy of low dividend payment.
4. Walter's model suggests that dividend payment dose not affect the market price of the share.
Choose the correct answer
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Operational techniques include
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Which of the following statement is false?
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Which of the following is an assumption of the APT?
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Which of the following are the examples of systematical risk.
1. Elimination of Government Subsidy
2. Increase in bank rate
3. Labour problem
4. High levered fund
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1. Elimination of Government Subsidy
2. Increase in bank rate
3. Labour problem
4. High levered fund
Select the correct answer:
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A company has issued 10% perpetual debt of Rs. 1,00,000 at 5% premium. If tax rate is 30%, then the cost of debt will be
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Which one of the following is the most popular method for estimating the cost of equity?
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Assertion (A): A furores contract specifies in advance the exchange rate to be used, but it is not as flexible as a forward contract.
Reason (R): A futures contract is for a specific currency amount and a specific marurity date.
Reason (R): A futures contract is for a specific currency amount and a specific marurity date.
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