2017 November 2nd&3rd Paper

 

Vanijyik Shiksha

1) Which one of the following statement is false?
a) The opportunity cost of an input is considered in a capital budgeting.
b) Capital budgeting decisions are reversible in nature.

c) Cash flow and accounting profit are different

d) An expansion decision is a capital budgeting decisions.

2) Main objective of the financial leverage is to.

a) Reduce risk associated with profit.

b) Maintain stability in profit.

c) Decrease the cost of debt capital.

d) Magnify the return on equity share capital.

3) Which one of the following is not a method of calculatsion cost equity capital?

a) Dividend yield method

b) Dividend yield plus growth method

c) Yield to maturity method

d) Earning yield method

4) Which one of the following equates the present value of cash outflow and the present value of expected cash inflow from a project.

a) Net present value (NPV)

b) Internal rate of return (IRR)

c) Payback period

d) Accounting rate of return (ARR)

Paper 3rd