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Commerce · all questions

Business Finance
practice.

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Which of the following is not a source of conflict in the project ranking in capital budgeting decision as per NPV and IRR?

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How should the Minimum Lease Payment (MLP) of a land and building lease get apportioned?

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Risk, as it relates to working capital, means there is jeopardy to the firm for not maintaining sufficient current assets to

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Assertion (a): When two or more investment proposals are mutually exclusive, ranking the proposals on the basis of IRR, NPV and PI methods may givecontradictory results.
Reason (R): The contradictory results in the ranking are due to differing dimensions relating to the scale of investments, cash flow patterns and project lives.
Indicate the correct answer:

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Every business undertaking requires funds for

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The profitability index of a project is the ratio of the present value of cash inflows to

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A set of possible values a random variable can assume, and their associated probabilities of occurrence are referred to as

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If a bank thinks lending money to a certain business is risky, it will

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Which method is a 'crude rule thumb' of capital budgeting?

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Which is not the technique of capital structure analysis?

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Which of the following statement is incorrect?

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Which of the following dividend promises to pay the shareholders at a future date?

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The repurchase of stock is considered . . . . . . . . decision rather than . . . . . . . . decision.

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Which of the following is an internal source of finance?

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Which of the following portfolio statistics statements is correct?

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The cost of equity share capital is more than the cost of debt because

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A lease is likely to be most beneficial to both parties when

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Consider the following statements.
In case of overcapitalisation,
1. market value of shares come down from its face value.
2. organisation failed to earn sufficient profit.
Which of the statement(s) given above is/are correct?

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International liquidity comprises which of the following?
(i) Gold held by central banks
(ii) Gold held by families
(iii) Forex reserve held by commercial banks
(iv) Mineral wealth
(v) SDRs
(vi) Borrowing facilities
(vii) NRIs and FDRs
(viii) Credit facilities available under SWAP

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XYZ Co earns Rs. 10 per share, capitalised at 10% and has a return on investment of 12%. What is the optimum dividend payout ratio as per Walter's dividend policy model?

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