Q181
Open questionWhich of the following sets out concisely the information about the scheme that a prospective investor ought to know before investing?
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Q182
Open questionInsufficient working capital may result in which combination of the following?
I. Failures to adapt to changes.
II. Enhancement in credit-worthiness of the firm.
III. Reduced availability of trade and cash discounts.
IV. Reduced volume of sales.
I. Failures to adapt to changes.
II. Enhancement in credit-worthiness of the firm.
III. Reduced availability of trade and cash discounts.
IV. Reduced volume of sales.
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Q183
Open questionAssertion (A): The weighted average cost of capital should be used as a hurdle rate for accepting or rejecting a capital budgeting proposal.
Reason (R): By financing in the proportions specified and accepting the project, yielding more than the weighted average required return, the firm is able to increase the market price of its stock.
Reason (R): By financing in the proportions specified and accepting the project, yielding more than the weighted average required return, the firm is able to increase the market price of its stock.
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Q184
Open questionWhich of the following statements are false?
1. Share capital issued by a company for the first time is known as venture capital.
2. All venture capital funds in India are promoted by the government.
3. In addition to capital, venture capitalists provide managerial and technical support to the assisted firms.
4. The benefits of venture capital financing can be realizedin long-run only.
1. Share capital issued by a company for the first time is known as venture capital.
2. All venture capital funds in India are promoted by the government.
3. In addition to capital, venture capitalists provide managerial and technical support to the assisted firms.
4. The benefits of venture capital financing can be realizedin long-run only.
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Q185
Open questionParticipating preference shares are those participating in the
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Q186
Open questionConsider the following statements.
1. Payback period method measures the true profitability of a project.
2. Capital rationing and capital budgeting mean the same thing.
3. Internal rate of return and time adjusted rate of return mean the same thing.
4. Rate of return method takes into account the time value of money.
Which of the statement(s) given above is/are correct?
1. Payback period method measures the true profitability of a project.
2. Capital rationing and capital budgeting mean the same thing.
3. Internal rate of return and time adjusted rate of return mean the same thing.
4. Rate of return method takes into account the time value of money.
Which of the statement(s) given above is/are correct?
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Q187
Open questionMatch the following.
| List-I | List-II |
| a. Urgency method | 1. It avoids in calculable risk and uncertainty in the long run |
| b. Payback method | 2. Also known as net gain method |
| c. Unadjusted rate of return method | 3. It is simple for the project with too large outlay |
| d. Net present value method | 4. Also known as financial statement method |
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Q188
Open questionSpecial Drawing Right (SDR) are
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Q189
Open questionWhat is Hawala?
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Q190
Open questionWhich of the following pairs is/are not correct?
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Q191
Open questionRisk of a portfolio can be minimized by which one of the following?
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Q192
Open questionWhich of the following methods of capital budgeting assumes that cash-inflows are reinvested at the project's rate of return?
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Q193
Open questionBy hedging a portfolio, a bank manager
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Q194
Open questionMatch the following.
| List-I | List-II |
| a. Depreciation funds | 1. . . . . . . . . is comparatively cheap. |
| b. Public deposits | 2. . . . . . . . . is the internal source of financing short-term working capital. |
| c. Term loans | 3. . . . . . . . . have been very popular among Indian companies. |
| d. Bank credit | 4. . . . . . . . . are resources raised for a period from 3 to 5-7 years. |
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Q195
Open questionWhich of the following is the most appropriate form for financing a new capital investment in plant and equipment?
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Q196
Open questionWhich of the following are the main benefits to originators in the context of asset-based securitization?
(i) Securitization improves returns on capital.
(ii) Securitization lowers the borrowing costs.
(iii) Securitization releases additional capital for expansion.
(iv) Securitization improves asset or liability.
(v) Securitization improves credit risk management.
(i) Securitization improves returns on capital.
(ii) Securitization lowers the borrowing costs.
(iii) Securitization releases additional capital for expansion.
(iv) Securitization improves asset or liability.
(v) Securitization improves credit risk management.
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Q197
Open questionWhich of the following is not a fundamental assumption made by Modigliani and Miller?
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Q198
Open questionArbitrage pricing theory may be more suitable for a company since it is based on the assumption that returns are determined by a number of factors to which a particular risk premium is attached. These factors are
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Q199
Open questionWhich of the following is an example of owner's fund?
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Q200
Open questionThe Board of Directors announces the amount and date of the next dividend on the . . . . . . . . date; while the . . . . . . . . date is the first date on which the purchaser of a stock is no longer entitled to the recently declared dividend.
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