Question23:-Which of the following statements are correct?
(1) The Net Income Approach States that the increase in proportion of debt
maximises the value of the firm

(11) Net Income Approach and Net operating Income Approach are both contributed
by Durand

(111) Net income approach and Net operating income approach both give
preference to debt for increasing the value of the firm

A:-Statements i and ii are correct
B:-Statements i and ii are correct
C:-Statements ii and iii are correct
D:-All the Statements are correct
Correct Answer:- Option-A

Question24:-Which of the following statements are correct with regard to Average
Rate of return of Capital budgeting?

(i) The ARR method considers all the cashflows throughout the economic life of the
project

(11) ARR methods considers the time value of money

(iii) Its information can be identified from the financial statement of the firm

A:-Statements i and ii are correct
B:-Statements i and iii are correct
C:-Statements ii and iii are correct
D:-All the statements are correct
Correct Answer:- Option-B

Question25:-Which of the following statements are correct regarding the Indian Call
Money market?

(1) It operates for short term borrowing and lending
(11) Transactions in the call money market are typically for a fixed term of 3 months
(111) The RBI is not involved in regulating the Call money market

A:-Statements i and ii are correct
B:-Statements i and iii are correct
C:-Statements ii and iii are correct
D:-All the statements are correct
Correct Answer:- Option-A

Question26:-Which of the following is a benefit of using a depository system for
holding securities?

(i) Reduced risk of physical certificates being lost or damaged

(11) Faster and more efficient settlement of securities transaction

(111) Higher returns on investment compared to traditional paper-based system
(iv) Greater transparency in shareholding pattern

A:-Statements i and ii are correct
B:-Statements ii and iv are correct

C:-Statements iii and iv are correct