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In optimum capital structure, value of the firm will be at
A) Maximum B) Minimum C) Low D) None of these

The process of buying securities in a market where price is low and selling where it
is high is known as
A) Speculation B) Hedging C) Arbitrage D) None of these

is amethod commonly used to lower the market price of shares by increasing
the number of shares belonging to each share holder.
A) Bonus issue B) Right issue C) Stock split D) Buy-back

is the level of inventory at which total cost of inventory is minimal.
A) Re-ordering level B) Minimum level C) Maximum level D) EOQ

is the measure of a total risk of a firm.

A) Financial leverage B) Operating leverage
C) Combined leverage D) All of these
is the intermediate approach between Net Income and Net Operating Income
approach.
A) MM approach B) Walter's model
C) Gordon’s approach D) Traditional approach

is the cost arising out of failure of customers to pay on due time.
A) Delinquency cost B) Collection cost
C) Default cost D) None of these

is the corporate net profits distributed among shareholders of the
company.
A) Interest B) Dividend C) Bonus D) Commission

Which of the following statements are true about cash management ?

1. Cash management strategies are adopted to minimise the operating cash
balance requirements.

2. The higher the period of cash cycle, the higher is the cash turnover.

A) Only statement 1 is true B) Only statement 2 is true
C) Both statements are true D) Both statements are false
According to MM theory, the market price of the share even after the payment
of dividend.
A) Increased B) Decreased
C) Unchanged D) None of these

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