Business Finance MCQs

Which one of the following is not matched? List I List II i. Interest is a deductible expense a. Cost of debt capital ii. Realized Yield Approach b. Cost of equity capital iii. Extended Yield Approach c. Retained earnings iv. Dividend Capitalization Approach d. Cost of preference share capital

. . . . . . . . means using short-term forward contracts to off set 'paper' gains and losses on the long-term assets and liabilities of foreign subsidiaries.

Match the items of List-I with the items of List-II and select the correct answer: List-I List-II a. Liquidity risk 1. Risk related to purchasing power of income b. Business risk 2. Risk related to firm's capital structure c. Financial risk 3. Risk related to inability to pay its dues on time d. Inflation risk 4. Risk related to fluctuation in profits

The payoffs for financial derivatives are linked to

Which of the following is not an approach to the capital structure?

Which of the following techniques for appraisal of investment proposals are based on the time value of money?

In capital budgeting, the term 'capital rationing' implies

Match the items of List-I with those of List-II and indicate the correct answer: List-I List-II a. ABC analysis 1. Dividend decision b. Walter model 2. Capital budgeting decision c. Capital rationing 3. Capital structure decision d. Net operating income approach 4. Working capital management decision

Read the following statements: 1. Working capital is the amount of funds necessary to cover the cost of operating the enterprise. 2. Circulating capital means current assets of a company that are changed in the ordinary course of business from one form to another.