೦45%
0:50%
Correct Answer:- Option ®
Question:-The situation where minimum level of earnings satisfies all financial charges is referred to as
‘AcfFinancial breakeven
B:-Financial indifference point
C-Optimum capital structure
D-None of these
Correct Answer:- Option-é
Question9:-Zero or low tax paying dividend clientele prefer
‏ماج‎ dividend
B:-Consistent dividend
CoHigh dividend
D-Capital gains
Correct Answer:- Option-C

Question10:-"Growth firms" as per Walter's Model is a firm having

=;

०१,

Correct Answer: Option-C

‘Question11:~Dividends are irrelevant to share holders wealth’
Assumptions: I Firm's value is determined solely by its investment
॥ - Change in dividend affects price of stock as it conveys future earnings

‘AOnly lis the correct assumption
Bs and Il are not correct assumptions
C-Only Il is the correct assumption
Dsl and Il are the correct assumptions
Correct Answer: Option-D
‘Question12:-Designing a proper capital structure requires the following
I Solvency
Profitability
MI Flexibility

1४ Transferability
Which of these are correct?

‘AcAll the four
Be, land IV
0

870۷

Correct Answer: Option-C
Question13:AcAverage rate of return
Be-Internal rate of return
CeAltemate rate of return
D:-Integrated rate of return
Correct Answer: Option ®
‘Question14:-Consider the following steps in the process of capital budgeting
(ய) Identification of investment proposal
(2) Evaluation of various proposals
(3) Selection and preparation of capital budgets
(4) Fixing priorities
(5) Implementation
(6)_ Performance review
Which sequence of these steps is correct?

ಹಡ 2, 3, 4,5,6

8:2, 2,5, 6,3,4