Business Finance MCQs

Which one refers to cash inflow under payback period method?

Which one of the following combination of rules stands true while preparing schedule of changes in working capital? 1. An increase in current assets increases working capital. 2. An increase in current assets decreases working capital. 3. An increase in current liabilities decreases working capital. 4. An increase in current liabilities increases working capital.

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

Which one of the following is not a method of calculating cost of equity capital?

Risk of a portfolio can be minimised by which one of the following?

The concept of present value is based on the

Interest paid (or earned) on only the original principal borrowed (or lent) is often referred to as

Read the following statements: 1. The rate of return on investment increases with the shortage of working capital. 2. Net working capital is the excess of current assets over current liabilities. 3. Greater the size of the business unit, larger will be the requirement of working capital. 4. Working capital is also known as circulating capital. Which one of the following consists of the correct statements?

Which of the following statements are true in the context of dilution of equity shares?