Finance MCQs

  • Question
Match the items given in List-I with most suitable options given in List-II.List – I List – II
(a) Rate of discount (i) Pay back
which equates period
the net present
value to zero.
(b) Ratio of present (ii) Internal
value of cash Rate of
inflows to the Return
cash outflow.
(c) Percentage of (iii) Profitability
annual net Index
income earned
on average fund
invested in a
project.
(d) Investment (iv) Average
divided by Rate of
annual net cash Return




Answer
  • Question
In which case,
The acquirer puts pressure on the
management of the target company
by threatening to make an open offer,
the board capitulates straight away
and agrees for settlement with the
acquirer for change of control.




Answer
  • Question
Which of the following method of
incorporation of risk in the capital
budgeting decision framework is
useful for situations in which
decisions at one point of time also
affect the decisions of the firm at
some later date ?




Answer
  • Question
In which of the approach, the market
value of the firm depends upon the
EBIT and the overall cost of capital




Answer
  • Question
Which is the assumption of
Modigliani and Miller approach to
cost of capital ?




Answer