Q321
Open questionThe concept of cost of capital can also be explained in terms of . . . . . . . . cost.
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Q322
Open questionBeta factors based on historical data may be a poor basis for future decision making. It is on the basis of evidence that suggests
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Q323
Open questionTransaction costs include
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Q324
Open questionMatch the following.
| List-I | List-II |
| a. Gross working capital | 1. Difference of current assets and current liabilities |
| b. Net working capital | 2. It is referred to as "hardcore working capital" |
| c. Permanent working capital | 3. It is the excess of working capital over permanent working capital |
| d. Variable working capital | 4. Total current assets |
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Q325
Open questionWhich of the following statements are true on wealth maximization?
(i) It takes into account the long-term approach.
(ii) It recognizesthe risk of uncertainty.
(iii) It takes into account the time value of money.
(iv) It takes into account the returns.
(v) It ignores stock market prices.
(i) It takes into account the long-term approach.
(ii) It recognizesthe risk of uncertainty.
(iii) It takes into account the time value of money.
(iv) It takes into account the returns.
(v) It ignores stock market prices.
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Q326
Open questionIf a firm moves from a 'conservative' working capital policy to an 'aggressive' policy, it should expect
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Q327
Open questionA multinational company that is faced with mild interference upto complete confiscation of all assets is encountering
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Q328
Open questionExternal source of finance do not include
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Q329
Open questionA company has issued 10% perpetual debt of Rs. 1 lac at 5% premium. If the tax rate is 30%, then the cost of debt will be
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Q330
Open questionUnder a flexible exchange rate regime, governments can retain monetary policy independence because the external balance will be achieved by
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Q331
Open questionIn contrast to the capital asset pricing model, arbitrage pricing theory
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Q332
Open questionDiscounted cash flow criteria for investment appraisal does not include
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Q333
Open questionMatch the following.
| List-I (Measurements of Cost of Capital) | List-II (Features) |
| a. Cost of debt | 1. Its calculation is relatively difficult task |
| b. Cost of preference share capital | 2. The amount of interest payment should be matched with the net cash proceeds of the debt |
| c. Cost of equity share capital | 3. The shareholders have to incur some brokerage cost for investing the dividends received |
| d. Cost of retained earnings | 4. The rate of dividend payable on these shares is fixed well in advance at the time of their issue |
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Q334
Open questionOnce the changeover to the euro was completed by 1st July, 2002, the legal-tender status of national currencies in the euro zone
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Q335
Open questionThe larger fluctuations in portfolio value of foreign exchange of financial institutions leads to
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Q336
Open questionWhich of the following is taken as the best approach to finance the long-term minimum needs of the working capital?
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Q337
Open questionWhich of the terms fill the gaps ill the following sentence?
The . . . . . . . . describes the linear relationship between expected rates of return for individual securities (or portfolios) and . . . . . . . .
The . . . . . . . . describes the linear relationship between expected rates of return for individual securities (or portfolios) and . . . . . . . .
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Q338
Open questionWhich of the following risks should be identified in international trade to be hedged?
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Q339
Open questionWhich of the following is not very much relevant in dividend decision?
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Q340
Open questionThe ratio that helps in assessing how effectively an enterprise uses resources provided by its owners is
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