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11
On the basis of the following information, what will be the EBIT corresponding to financial indifference point?
Total capital outlay is Rs. 60,00,000
Financing Plans is 100% Equity is at Rs. 10/- per share
Debt-equity ratio is 2 : 1
Rate of interest is 18% p.a.
Corporate tax rate is 40%
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Answer & Solution
Answer: Option C
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12
The ratio of the standard deviation of a distribution to the mean of that distribution is referred to as
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Answer: Option D
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13
The main objective of employing financial leverage is to
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Answer: Option D
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14
Which of the following are the means of marketing new issues of securities?
1. By listing of securities.
2. Through jobbers and brokers.
3. By private placing of securities.
4. Through privileged subscription.
Select the correct answer by using the options given below
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Answer & Solution
Answer: Option D
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15
Match the following.
List-I List-II
a. Market risk 1. It is known as insolvency risk
b. Inflation risk 2. Risk caused due to demand and supply pressure
c. Credit risk 3. Risk due to inability to meet firm's financial obligations
d. Financial risk 4. Exchange in real value of return as a result of rise in production cost
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Answer & Solution
Answer: Option C
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16
Arbitrageurs in foreign exchange markets
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Answer: Option C
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17
A/An . . . . . . . . hedge protects the company from adverse exchange rate movements but allow the company to benefit from favoarable movements.
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Answer: Option D
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18
Net working capital refers to
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Answer: Option B
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19
Which of the following is a reason to hedge a portfolio?
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Answer: Option B
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20
Identify by the web-based financial software from the following.
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Answer: Option D
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