- Dividend policy model
- Dividend growth model
- Dividend price model
- All of these
- b
All Categories
The difference between an investments market value and its cost is called ———– of the investment?
- Economic value
- Book value
- Net present value
- Future value
- c
Which one of the following is the rate of return that firm’s creditors demand on new borrowing?
- Cost of preferred stock
- Cost of debt
- Cost of common stock
- Cost of retained earnings
- b
Rule of 72 for finding the number of periods is fairly applicable to which of the following range of discount rates?
- 5% to 20%
- 4% to 25%
- 2% to 8%
- 10% to 50%
- a
A borrower is able to pay Rs. 40000 in 5 years. Given a discount rate of 12 percent. What amount of money the lender should lend?
- Rs. 18,256
- Rs. 14,186
- Rs. 22,697
- 28,253
- c
In which type of business, all owners share in gains and losses and all have unlimited liabilities for all business debts?
- General partnership
- Sole proprietorship
- Limited partnership
- Corporation
- a
-
Two people start a Shop / Store. Both Partners must be involved in business activities, it is called General Partnership.
Which one of the following is not a form of business organization?
- Sole proprietorship
- Joint stock company
- Co-operative society
- Partnership
- c
-
Cooperative Society is basically a voluntary association.
Which of the following statement shows assets, liabilities and net worth as on a specific date?
- Owner’s Equity Statement
- Balance Sheet
- Income Statement
- Cash Flow Statement
- b
-
Balanced Sheet is prepared on the end of an accounting period.
Which of the following term refers to the use of debt financing?
- Operating Leverage
- Manufacturing Leverage
- Financial Leverage
- None of these
- c
-
Financial Leverage is an investment strategy that is implemented on borrowed money.
Sales Rs. 25000 Variable cost Rs. 8000 Fixed cost Rs. 5000 Break even sales in value:
- Rs. 7936
- Rs. 8333
- Rs. 7353
- Rs. 9090
- c