Questions

Finance function includes

Capital structure means
Over capitalisation means
Huge promotion expense leads to
A business established during depression period can be
A high geared company…
Optimum capital structure….
FRICT analysis includes
Financial leverage is..
Degree of financial leverage
Financial break even point in the level of activity where
The appropriate objective of an enterprise is
The job of a finance manager is..
Financial decision involves
According to traditional approach finance fnction refers to
Business finance is a part of ..
Ploughing back of profit means
Capital budgeting means
What is financial plan+
Fixed capital requirement refers to
Optimum capital structure is the combination of debt and equity which
Floatation cost means
Financial leverage and trading on equity are
Indifference point in the level of activity where
Financial break even point is
Operating leverage refers to use of ..
Dividend Distribution Tax is payable by
Which of the following is not true for MM Model
In order to calculate the proportion of equity financing used by the company, the following should be used:
Which of the following sources of funds has an Implicit Cost of Capital?
In case the firm is all-equity financed, WACC would be equal to:
Cost of Capital for Government securities is also known as:
Cost of Capital for Bonds and Debentures is calculated on:
Weighted Average Cost of Capital is generally denoted by:
Which of the following cost of capital require tax adjustment?
Which is the most expensive source of funds?
.Marginal cost of capital is the cost of:
Relationship between change in Sales and d Operating Profit is known as:
In case of partially debt-financed firm, k0 is less
In order to calculate Weighted Average Cost of weights may be based on:
Firm's Cost of Capital is the average cost of:
An implicit cost of increasing proportion of debt is:
Combined leverage can be used to measure the relationship between:
Which of the following is true?
Cost of capital may be defined as:
Minimum Rate of Return that a firm must earn in order to satisfy its investors, is also known as:
Cost of Capital for Equity Share Capital does not imply that:
Higher FL is related the use of:
The term capital structure denotes:
Debt Financing is a cheaper source of finance because of:
In order to find out cost of equity capital under CAPM, which of the following is not required:
Tax-rate is relevant and important for calculation of specific cost of capital of:
Advantage of Debt financing is:
Cost of issuing new shares to the public is known as:
Cost of Equity Share Capital is more than cost of debt because:
Which of the following is not a generally accepted approach for Calculation of Cost of Equity?
Operating leverage helps in analysis of:
Which of the following is studied with the help of financial leverage?
Financial Break-even level of EBIT is one at which:
Cost of Redeemable Preference Share Capital is:
A
Executive and incidental finance function
Financial structure
Excess capital
Under capitalisation
Under capitalised
Equity will be more than debt
Maximum cost of capital
fund, risk, interest, control and time
EBIT/EBT
% change in EPS/% change in EBIT
EBIT will be zero
Maximisation of sales
Raising of funds
investment,financing and divident decision
Utilisation of fund
Personal finance
Proper utilisation of profits
Preparation of budgets for raising capital
Statement of deficiency of total amount of capital
Working capital
Maximise the market value of the firm
Csot of raising funds
Same
EBIT will be the same for alternative financial plan
Equel to interest
Fixed cost
Shareholders to Government
Share price goes up if dividend is paid
Authorised Share Capital,
Equity Share Capital,
Cost of Debt
Risk-free Rate of Interest,
Before Tax basis
kA,
Cost of Equity Shares,
New Equity Shares,
Additional Sales,
Financial Leverage,
Kd
Market Values
All sources
Tax should would not be available on new debt,
EBIT and EPS
Retained earnings are cost free,
Weighted Average cost of all debts,
Average Return on Investment, (c)
Market Price is equal to Book Value of share,
Higher Equity,
Total of Liability side of Balance Sheet,
Time Value of Money,
Beta Factor
Equity Share Capital
Interest is tax-deductible
Cost of Equity,
Face value of debentures is more than face value of shares,
CAPM
Business Risk
Marketing Risk,
EPS is one
Rate of Dividend,
B
Routine and auxilary finance function
Capitalisation
Earnings are not justified by th institution
Over capitalisation
Over Capitalised
Debt will be more than Equity
Maximum market value of shares
flexibilty, risk, income, control and time
EBT/EBIT
% change in EBT/% change in ebt
EBTwill ne zero
Maximisation of profit
Management of Cash
investment, sales and financing decision
Procurement of funds
Public finance
Raising profit by using debt funds
Making investment decision in long term expenditure
A statement showing total amount of capital to be raised
Long term capital
Minimise cost of capital
Cost of utilising funds
different terms
EPS will be the same for alternaive financial plan
Interest+(DP/1-T)
Variqble cost
Shareholders to Company
Share price goes down if dividend is not paid
Equity Share Capital plus Reserves and Surplus,
Preference Share Capital,
Cost of Equity
Maximum Rate of Return
After Tax basis
kw,
Cost of Preference Shares,
New Preference Shares,
Additional Funds,
Operating Leverage
Ke
Target Values
All borrowings
P.E. Ratio would increase,
PAT and EPS
External Equity is cheaper than Internal Equity,
Rate of Return expected by Equity Shareholders,
Weighted Average Cost of Capital,
Shareholders are ready to subscribe to right issue,
Higher Debt,
Equity Funds, Preference Capital and Long term Debt,
Rate of Interest,
Market Rate of Return
Preference Share Capital,
It reduces WACC,
Cost of Capital,
Equity shares have higher risk than debt,
Dividend Discount Model
Financing Risk,
Interest Rate Risk,
EPS is zero
After Tax Rate of Dividend,
C
Incidential and routine finance function
make up of capitalisation
Capital is more than debt
Optimum capitalisation
Proper capitalised
Long term liability more than current liability
Maximum market value of firm
fund,return,investment,capital and taxation
EAIT/EBT
% change in EAIT/ % change in EBT
EPS will be zero
Maximisation of wealth
Raising and effective utilisation of funds
investment, divident and cash decision
Procurement and utilisation of fund
Private finance
Keeping profit for paying future divident
Making investment decision in working capital
A statement showing different sources of finance
both a and b
both a and b
Cost of raising and utilising funds
don'nt know
Financial break even point occurs
both a and b
Total cost
Company to Government
Market value is unaffected by Dividend policy
Equity Share Capital plus Preference Share Capital,
Debentures,
Neither (a) nor (b)
Rate of Interest on Fixed Deposits
Risk-free Rate of Interest basis,.
k0,
Cost of Debentures,
New Debts,
Additional Interests,
Net Profit Ratio
Both (a) and (b
Book Values
Share capital
Equity shareholders would demand higher return,
Sales and EPS
Retained Earnings are cheaper than External Equity,
Average IRR of the Projects of the firm,
Net Profit Ratio
Market Price is more than Issue Price,
Lower Debt,
Total Shareholders Equity,
Tax-deductibility of Interest,
Market Price of Equity Share
Debentures,
Does not dilute owners control,
Flotation Cost,
Equity shares are easily saleable,
Rate of Pref. Dividend Plus Risk
Production Risk
Foreign Exchange Risk
EPS is Infinite
Discount Rate that equates PV of inflows and out-flows relating to capital,
D
Auxilary and subsidiary finance function
Share capital
capital is more than assets
High rate of interest
All of the above
Assets more than liability
Maximum market value of debt
finance,return, investment,control and taxation
EAIT/EBIT
% change in EPS/% change in EAIT
EBIT and EBT will be the same
Maximisation of production
management of fund utilisation
investment,finance and cash decision
None of the above
None of the above
Keeping profit for meeting future finance requirements
All of the above
None of the above
None of the above
None of the above
None of the above
No Comment
No difference between EBIT and EPS
None of the above
All of the above
Holding to Subsidiary Company
All of the above
Equity Share Capital plus Long-term Debt.
Retained earnings.
Both (a) and (b).
None of the above
None of the above
kc,
Cost of Retained Earnings.
Retained Earnings.
None of the above.
Gross Profit Ratio
None of the above.
All of the above
Share Bonds & Debentures.
Rate of Return of the company would decrease
Sales and EBIT
Retained Earnings are costlier than External Equity.
Minimum Rate of Return that the firm should earn.
Average Cost of borrowing.
Any of the three options.
None of the above
Types of Capital Issued by a Company.
Dividends not Payable to lenders.
Risk-free Rate of Interest.
(a) and (b) above.
All of the above.
Marginal Cost of Capital.
All of the three above.
Price-Earnings Ratio.
Credit Risk
Financing risk
EPS is Negative.
None of the above.
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