741. A mutually exclusive project can be selected as per payback period when it is _________.
A.Less.
B.More.
C.More than 5 years.
D.None of the above.

742. The project can be selected if its profitability index is more than ______.
A.1%.
B.3%.
C.5%.
D.10%.

743. Initial outlay 50,000, life of the asset 5 yrs, estimated annual cash flow 12,500, IRR = ____________.
A.5%
B.6%
C.8%
D.10%

744. X ltd issues rupees 50,000 8% debentures at a discount of 5%. The tax rate is 50% the cost of debt capital is __________.
A.4%.
B.4.2%.
C.4.6%.
D.5%

745. Cost of the project is 6,00,000 , life ofthe project is 5 years annual cash flow is 2,00,000 cut off rate is 10% the discounted payback period is ______________.
A.2 yrs.
B.2 yrs 6 months.
C.3 yrs.
D.3 yrs 9 months.

746. Toincrease the given present value, the discounted rate should be adjusted
A.Upward.
B.Downward.
C.No change.
D.Constant

747. Whichform of market efficiency states that current security prices fully reflect all information, both public and private?
A.Weak.
B.Semi-strong.
C.Strong.
D.Highly strong.

748. ________________ is one that maximizes value of business, minimizes overall cost of capital, that is flexible, simple and futuristic, that ensures adequate control on affairs of business by the owners and so on.
A.Minimal capital structure.
B.Moderate capital structure.
C.Optimal capital structure.
D.Deficit capital structure.

749. ___________________ refers to make-up of a firm’s capitalization.
A. Capital structure.
B. Capital budgeting.
C. Equity shares.
D. Dividend policy.

750. _____________ of different sources of capital influences capital structure.
A.Restrictive covenants.
B.Tax advantage.
C.Cost of capital.
D.Trading on equity.

NOTE
IF YOU THINK ANY OF THE MCQ ABOVE IS WRONG.
PLEASE COMMENT WITH CORRECT ANSWER AND ITS DETAIL EXPLANATION IN COMMENT BOX.
THANK YOU

This Post Has One Comment

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