೦45%
0:50%
படட ೦೧0078.
Question8:-The situation where minimum level of earnings satisfies all financial charges is referred to as
‘Acfinancial breakeven
B:-Financial indifference point
C-Optimum capital structure
D-None of these
Correct Answer:- ೦೧000
Question9:-Zero or low tax paying dividend clientele prefer
‘AcLow dividend
B:-Consistent dividend
೦1160 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: | - Firm's value is determined solely by its investment
॥ - Change in dividend affects price of stock as it conveys future earnings

‘A:Only 115 the correct assumption
8:1 and Il are not correct assumptions
C-Only ॥ is the correct assumption
0:1 and ॥ are the correct assumptions
Correct Answer: Option-D
‘Question12:-Designing a proper capital structure requires the following
1. Solvency
Profitability
॥ Flexibility

۲۷ Transferability
Which of these are correct?

‘AcAll the four
۷
0

8,70۷

Correct Answer: Option-C
Question13:AvAverage rate of return
Be-Internal rate of return
77200 rate of return
D:-Integrated rate of return
Correct Answer: 8
‘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?

Ac, 2,3, 4,5,6

Bel, 2,5, 6, 3, 4