24. measures present value of returns per rupee
(ಗಿ) Net present value (8) Terminal value
(C) Profitability index (D) Return on investment
25. The choice of investment proposals under financial constraints of capital expenditure budget
is called :
(A) ‘Capital rationing (B) Capital budgeting
(C) Capital gearing (0) Capital expenditure control
26, The risk to the firm of being unable to cover fixed aperating cost is called :
(A) Financial risk (B) Interest rate risk
(C) Business risk (D) Systematic risk
27. The EBIT level at which EPS is the same for two alternative financial plans is referred to as :
(A) Break-even point (B) Indifference point
(€) Financial Break-even point (D) None of the above
28. Average rate of return is calculated from :
(ಗಿ) Annual cash flows (8) Annual Profits
(0 Annual sales (D) None of the above
29. 17 ೫0100 method of capital budgeting cash inflows are discounted at the cost of capital 7
(ಗಿ) Internal rate of return (B) Average rate of return
) Net present value (D) None of the above
30. Financial leverage is calculated by :
(A) EBIT /PBT (B) ணா
(C) Contribution /EBIT (D) EBIT /EPS
31. “Pecking order theory” is associated with :
(ക) Dividend decision (8) Investment decision
(C) Working capital decision (D) Financing decision
32. Arbitrage process is the operational justification of which of ihe following theories ?
(A) Net Income theory (ए) Net Operating Income theory
)© Modigliani and Miller theory (D) Walter's theory
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