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Business Finance
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Which of the following is the systematic risk?

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Match the items of List-I with the items of List-II, and find out the correct matching.
List-I List-II
a. 1. Financial leverage
b.    2. Super-leverage EBIT
c. 3. Operating leverage

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Investment in machines require

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Statement-I: In the payback period method, the risk of the project is adjusted by lessening the target payback period.
Statement-II: Sensitivity analysis helps in the calculation of the net present value of the proposal.

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Which combination of the following two statements (A) and (R) is correct?
Assertion (A): The IRR of a project is the discount rate which reducesits NPV to zero.
Reason (R): A project is worth accepting if the IRR exceeds the cost of capital.

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Match the following:
List-I List-II
a. Matching approach 1. Dividend Policy
b. Structural ratios 2. Inventory Management
c. Ordering quantity 3. Financing Working Capital
d. Bonus shares 4. Capital Structure

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The single European currency, the euro, was adopted by 11 member nations on 1st January, . . . . . . . .

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For a layman, factoring and forfaiting perform the same basic function. Factoring mostly deals with

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Combined leverage can be used to measure the relationship between

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Assertion (A): Acompany should pay a minimum dividend to its shareholders.
Reason (R): Dividends are heavily taxed than capital gains.

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The segments of international financial market include
1. Foreign Exchange Market
2. International Arbitrage Market
3. International Money Market
4. International Bond Market
Select the correct answer by using the options given below

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The instrument chosen for enhancement of international liquidity is

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Which of the following are rules to use when choosing between forward contracts and currency options?

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The overall capitalization rate and the cost of debt remain constant for all degrees of financial leverage. It is advocated by

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In which of the following ways should the discount rate be adjusted to increase a given future value?

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Net present value is equal to

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For contingency exposure of foreign exchange, the best derivative that can be used to hedge is

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The cost of issuing new stock is called

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The date of settlement for a foreign exchange transaction is referred to as

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Securitisation is a process in which assets are sold to a bankruptcy remote . . . . . . . . in return for an immediate cash payment.

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