Which of the following statements are true in the context of dilution of equity shares?
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Which of the following can be termed as the source of permanent working capital?
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'Dividend is not relevant in determining the value of the company'. Who among the following held this opinion?
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Corporations today are operating in an environment in which exchange rate changes may adversely affect their competitive positions in the marketplace. This situation, in turn, makes it necessary for many firms to
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In case, cost of capital is 10%, EPS Rs. 10, IRR 8% and retention ratio is 60%, then the value of equity share as per Gordon's Model will be
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Which of the following variables is not known in internal rate of return method of capital budgeting?
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The euro zone is remarkably comparable to the United States in terms of
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Which of the following is included in international liquidity?
1. Foreigner exchange reserve.
2. Borrowing capacity of the various countries.
3. Gold reserves.
1. Foreigner exchange reserve.
2. Borrowing capacity of the various countries.
3. Gold reserves.
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Which of the following statement is not correct?
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Statement I: In payback period method, the risk of the project is adjusted by lessening the target payback period.
Statement II: Sensitivity analysis helps in calculation of net present value of the proposal.
Statement II: Sensitivity analysis helps in calculation of net present value of the proposal.
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The portion of eamings which is distributed among shareholders in the form of dividend is called
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Which one of the following methods of capital budgeting assumes that cash inflows are reinvested at the project's rate of return?
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Match List-I with List-II and select the correct answer:
| List I | List II |
| a. Extended Fund Facility | 1. 1986 |
| b. Compensatory Financing Facility | 2. 1963 |
| c. Compensatory and Contingency Facility | 3. 1988 |
| d. Structural Adjustment Facility | 4. 1974 |
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The elimination of riskless profit opportunities in the futures market is
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From the following techniques of capital budgeting decision, indicate the correct combination of discounting techniques.
1. Profitability index
2. Net present value
3. Accounting rate of return
4. Internal rate of return
1. Profitability index
2. Net present value
3. Accounting rate of return
4. Internal rate of return
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Which of the following techniques for appraisal of investment proposals are based on time value of money?
1. Accounting rate of return
2. Internal rate of return
3. Profitability index method
4. Earnings per share
Select the correct answer:
1. Accounting rate of return
2. Internal rate of return
3. Profitability index method
4. Earnings per share
Select the correct answer:
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In a traditional approach, which of the following statement is true in the context of the average cost of capital?
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Match List-I with List-II and select the correct answer:
| List-I | List-II |
| a. Payback rate of return | 1. Discounted cash flow technique |
| b. Internal rate of return | 2. Cornpounded values of investments and returns |
| c. Benefit cost ratio | 3. Crude method for project evaluation |
| d. Net terminal value method | 4. Varying sized projects evaluation |
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Assertion (A): Arbitrage keeps the cost of capital constant despite change in the capital structure.
Reason (R): It ensures compensating inverse change in cost of equity capital with a change in the cost of debt capital.
Reason (R): It ensures compensating inverse change in cost of equity capital with a change in the cost of debt capital.
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Q100
Open questionCash flow management involves
1. Lock-box system
2. Marketable securities
3. Playing the float
4. Concentration bank account
Select the correct answer:
1. Lock-box system
2. Marketable securities
3. Playing the float
4. Concentration bank account
Select the correct answer:
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