2016 august paper 2nd (FM)

 

Vanijyik Shiksha

1) Which of the following formula is used to calculate degree of combined leverage?

a) % change in EBT / % change in EBIT

b) % change in EPS/% change in sales

c) % change in EBIT / % change in sales

d) None of the above

2) Statement 1st -: Both Net income (NI) approach & Modigliani approach assume that cost of capital is independent of the degree of financial leverage.

Statement 2nd -: A capital structure which minimises cost of capital and maximises Earning per share is an optimum capital structure.

a) Statement 1st & 2nd both are correct

b) Both are wrong.

c) Statement 1st correct and 2nd in wrong

d) Statement 1st wrong and 2nd statement is correct.

3) Which of the following formula is used for calculating the cost preference share capital?

a) (Preference dividend ÷ market price of preference share) × 100

b) ( Preference dividend ÷ Net proceeds from preference share ) × 100

c) (Net proceeds from preference shares ÷ preference share capital) ×100

d) ( Preference Dividend ÷ Net proceeds from preference share) × 100