28,

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28,

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172/2018 6 A |

While determining managerial remuneration, which among the following is not considered?

(A) Commission received ⊳ (B) Profit on sale of forfeited shares
)0 Premium on shares (D) Both (B) and (C)
Cost of Capital refers to :
(ಗಿ) Required Rate of Return {B) Dividend
(ര Floatation Cost (D) None of the above

Identify the correct statement :
(^) Retained Earnings are cost free
(18 External Equity 18 cheaper than Internal Equity
(C) Retained Earnings are cheaper than External Equity
(D} Retained Earnings are costlier than External Equity

The Internal Rate of Return (TRR) டீ:
(ക) the same thing as the discount rate
(8) the same thing as the cost of capital
(C) the ratio of average annual profits to average investments
(D) the discount rate that equates the present values of inflows and cutflows

. The optimal capital structure of a firm :

(ക) minimizes the firm’s cost of debt capital

(B) is that combination of debt, preferred and common stock that maximizes the
firm’s share values

(C) is one in which the weighted cost of capital is less than the IRR

(11) none of the above are correct

The dividend-payout ratio is equal to :
(೩) the dividend yield plus the capital gains yield
(B) dividends per share divided by earnings per share
(€) dividends per share divided by par value per share
(D) dividends per share divided by current price per share

‘Shareholder’s wealth’ in a firm is represented by :
(ಯ) the market price per share of the firm’s common stock
(2) the number of people employed in the firm
(C) the book value of the firm's assets less the book value of its liabilities
(D) 165 amount of salary paid to its employees

Firm ന r < k may be referred as :
(ಯ) growth firm (B) normal firm
(© declining firm (D) none of these

The type of lease that includes a third party, a lender, is called :
(A) leveraged lease (B) sale and leaseback
(©) direet leasing arrangement (12) operating lease