Assignment for Strategic Finance

Description Match The Following

Remaining Time

Attempted Question : 33 / 47

Marks : 5

35.

1. Fiscal advantage, the interest of financing with debt 2. Financing with a high percentage of debt 3. Firms must repay debts 4. A highly leveraged firm

1. Shows the illusion of financial problems 2. Not necessary to have discussions regarding the sell out of assets 3. Employees & trade unions increase their demands 4. Is deductible from the profit 5. Discussions about the sell out of assets must be made 6. Prevents firms from investing too much

Assignment for Strategic Finance

Description Match The Following

Remaining Time

Attempted Question : 33 / 47

Marks : 5

36.

1. Date of announcement of new dividend 2. Dividend payment made to members on a particular date 3. Date from which stocks begin to trade without the right to receive the dividend declared

1. Payment date 2. Ex - dividend date 3. Transfer date

4. Date company mails the dividend warrants

4. Record date 5. Declaration date 6. Registration date

Multiple Choice Multiple Answer Question Due to diversification employees seek:Correct Answer Higher compensation , Job security , Better opportunities within the firm Your Answer Higher compensation , Job security , Better opportunities within the firm Select The Blank Question A geographical segment cannot be ________. Correct Answer Countries in different zones Your Answer A single country Select The Blank Question A shareholder expects a higher rate of return as a firm's compensation for ________. Correct Answer Increased risk Your Answer Increased risk Multiple Choice Single Answer Question Most companies focus only on :Correct Answer Return on investment Your Answer Return on investment Multiple Choice Multiple Answer Question As a general rule, an asset is :Correct Answer A good or a right that a firm owns in a determined moment , Prepayment

adjustments , Capitalized expenses Your Answer A good or a right that a firm owns in a determined moment , Prepayment adjustments , Capitalized expenses Multiple Choice Multiple Answer Question In the disclosures in financial statements, there are significant restrictions on :Correct Answer The right of ownership , Realisability of investments , The remittance of income & proceeds of disposal Your Answer The right of ownership , The remittance of income & proceeds of disposal , Other disclosures Multiple Choice Single Answer Question Equity includes :Correct Answer Development Rebate Reserve Your Answer Deferred Payment Liabilities Match The Following Question Correct Answer Your Answer Free cash flow theory Enormous conflicts of interest between Stakeholders and shareholders Enormous conflicts of interest between Stakeholders and shareholders Net income approach Cost of debt & equity do not change with a change in leverage ratio Cost of debt & equity do not change with a change in leverage ratio Net operating income approach The overall capitalization rate remains constant for all levels of financial leverages The overall capitalization rate remains constant for all levels of financial leverages Modigliani - Miller Theory weighted average cost of capital does not change with a change in the proportion of debt to equity in the capital structure weighted average cost of capital does not change with a change in the proportion of debt to equity in the capital structure True/False Question Organisational changes are similar to mission changes. Correct Answer True Your Answer

True Multiple Choice Single Answer Question Which of the following is NOT A Characteristic of declining firm :Correct Answer The optimum payout ratio for a declining firm is not 100 % Your Answer The firm should not reinvest any profits Select The Blank Question A company shall buyback its shares through the stock exchange by making a public announcement at least ________ days prior to the commencement of buyback. Correct Answer Seven Your Answer Fourteen True/False Question Money becomes less valuable when received at a latter stage instead of in present time. Correct Answer True Your Answer True Select The Blank Question The resource theory considers that the competitive position of a firm depends on its ________ Assets. Correct Answer Specific Your Answer Intangible Multiple Choice Multiple Answer Question A firm having aggressive policy of investing in current assets will show the following features :Correct Answer Frequent production stoppages , High ROI Your Answer Frequent production stoppages , High ROI , Timely deliveries to customer True/False Question

Making decision on dividend is a very crucial area of financial management for a firm. Correct Answer True Your Answer True Multiple Choice Single Answer Question Segment reporting comes under :Correct Answer AS 17 Your Answer AS 17 True/False Question Usually cost data is perfect for ABC Analysis & distribution. Correct Answer False Your Answer False Multiple Choice Single Answer Question As per Pecking order theory, which is the costliest means of funding :Correct Answer Equity Shares Your Answer Equity Shares Match The Following Question Correct Answer Your Answer Mechanisms Performs or provides energy to an activity Performs or provides energy to an activity Inputs Information or material used to produce the output of an activity Information or material used to produce the output of an activity Controls Information or material that constrains an activity Information or material that constrains an activity Outputs Information or material produced by an activity Information or material produced by an activity

True/False Question According to NOI Approach, any capital structure is optimum. Correct Answer True Your Answer True Select The Blank Question The ________ often gives the best insight into the borrower's short term credit needs. Correct Answer Cash budget Your Answer Market research Select The Blank Question If firms have same technology ________ makes the difference i.e. firms become more productive . Correct Answer Solid human resource team Your Answer Latest & updated techniques True/False Question Explicit cost and implicit cost are the two parts of cost of debt. Correct Answer True Your Answer True Select The Blank Question If a segment is not designated as a ________ it should be included as an unallocated reconciling item. Correct Answer Reportable segment Your Answer Business segment Multiple Choice Single Answer Question Research into true human resources accounting began in :Correct Answer 1960`s

Your Answer 1960`s Select The Blank Question Increase in cost of capital means decrease in ________. Correct Answer Profitability Your Answer Expected returns True/False Question According to NI Approach, decrease in leverage decreases the overall cost of capital and increases the firm's value. Correct Answer False Your Answer True Multiple Choice Multiple Answer Question Accrued expenses represent :Correct Answer Costless financing , An interest free source of financing Your Answer Costless financing , An interest free source of financing Multiple Choice Multiple Answer Question The direct costs tier normally only includes the following :Correct Answer The personnel payroll , Supplies , Individual rental equipment Your Answer The personnel payroll , Supplies , Individual rental equipment Multiple Choice Single Answer Question Fixed price tender offers are accompanied by an abnormal announcement period return of :Correct Answer 8 - 10 % Your Answer 6-8% Multiple Choice Single Answer Question Many companies claim their main assets are their :-

Correct Answer People Your Answer Land Multiple Choice Multiple Answer Question The main assumptions for stock repurchase models are as follows :Correct Answer The market is efficient , There is perfect competition in the securities market Your Answer The market is efficient , There is perfect competition in the securities market , Investors are not very keen to maximize the value of their investment Multiple Choice Single Answer Question The Buy back of shares shall not be made from Correct Answer The promoters or persons in control of the company Your Answer The promoters or persons in control of the company True/False Question Opportunity costs and real costs decrease the market value of a firm. Correct Answer True Your Answer False True/False Question Retained earnings are the most important internal sources of financing the growth of the firm. Correct Answer True Your Answer True True/False Question The chance of bankruptcy is small when the leverage of a firm is small. Correct Answer True Your Answer True Multiple Choice Multiple Answer

Question Examples of accounting methods used by firm are :Correct Answer FIFO , LIFO , Accrual Accounting Your Answer FIFO , LIFO , Overhead calculations Multiple Choice Single Answer Question For the following process the valuation is needed to decide the price at which the deal will be possibly concluded :Correct Answer Mergers & Acquisitions Your Answer Computation of wealth tax & gift tax True/False Question Diversification helps in preserving a firm's reputation & goodwill. Correct Answer True Your Answer True Multiple Choice Single Answer Question According to Net Income Approach, the average cost of capital declines as the leverage ratio :Correct Answer Increases Your Answer Increases True/False Question Whether a lease is a finance lease or an operating lease depends on the substance of the transaction rather than its form. Correct Answer False Your Answer True Select The Blank Question Forfeiting is mostly used for ________. Correct Answer Big ticket items & durable goods Your Answer

Big ticket items & durable goods Multiple Choice Multiple Answer Question The financial framework of a merger decision covers 3 interrelated aspects i.e. :Correct Answer Determining the firm's value , Financing techniques in mergers , Analysis of merger as a capital budgeting decision Your Answer Determining the firm's value , Financing techniques in mergers , Analysis of merger as a capital budgeting decision True/False Question For determining exchange ratio, the model developed by Conn & Nielson is used. Correct Answer True Your Answer True Multiple Choice Single Answer Question One of the important assumptions for capital structure theories is :Correct Answer Debt and equity are the 2 kinds of funds used by the firm Your Answer Debt and equity are the 2 kinds of funds used by the firm Select The Blank Question ________ are not diversible. Correct Answer Market related risks Your Answer Market related risks Multiple Choice Multiple Answer Question The financial managers of a company consume a great deal of their time in activities like :Correct Answer Monitoring the investment in inventories , Negotiating favourable credit terms , Administrating Accounts receivables Your Answer Monitoring the investment in inventories , Negotiating favourable credit terms , Administrating Accounts receivables