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. Arguments in favour of profit maximization is
A) It serves the interest of society also
B) It is an appropriate measure of firm’s performance
C) Both A) and B)
D) None of the above

. The components of cost of capital are
A) Equity B) Debt
C) Retained earnings D) All of the above
. Statement|: At optimum capital structure, the overall cost of capital is minimum
and the total market value of the firm is maximum.

Statement II : At optimum capital structure, the overall cost of capital is maximum
and the total market value of the firm is minimum.

Which of the statements is/are correct ?

A) Statement | B) Statement II
C) Statement | and II D) None of these
. One of the source of raising long term finance is
A) Factoring B) Advances from customers
C) Cash Credit D) Venture capital funding

. Statement| : Working capital management is concerned with how much to invest
in each type of current assets.

Statement Il : Working capital management deals with the way in which current
assets can be financed.

Which of the statements is/are correct ?
A) Statement II B) Statement |
C) Statement | and II D) None of these

. Statement|: Commercial papers and certificate of deposits are money market
instruments.

Statement II : Money market instruments are short term instruments.

Statement Il : Money market is a market where long term instruments are traded.
A) Statement | is correct but Statement II and Statement III is incorrect

B)

C) Statement | and Il is correct but Statement IIl is incorrect
D)

Statement Ill is correct but Statement II and Statement | is incorrect

Statement | and III is correct but Statement Il is incorrect

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