Business Finance MCQs

"Dividend is not relevant in determining the value of the company". Who held this opinion?

Which of the following is the systematic risk?

Match the items of List-I with the items of List-II, and find out the correct matching. List-I List-II a. $$\frac{{{\text{Contribution}}}}{{{\text{EBIT}}}}$$ 1. Financial leverage b. $$\frac{{{\text{EBIT}}}}{{\left( {{\text{Earning before tax}}} \right){\text{EBT}}}}$$ 2. Super-leverage EBIT c. $$\frac{{{\text{Contribution}}}}{{{\text{EBIT}}}}$$ 3. Operating leverage

Investment in machines require

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.

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.

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

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

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