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Business Finance MCQ Questions and Solutions with Explanations | Commerce

Business Finance MCQ Questions and answers with easy and logical explanations. Commerce provides you all type of quantitative and competitive aptitude mcq questions with easy and logical explanations. Business Finance MCQ is important for exams like B.COM, M.COM, BBA, BBM, CA, CS, CMA, CPA, CFA, UPSC, NET, Banking and other commerce department exam. Page-8 section-5

Each section contains 100 MCQs on Business Finance .
71
"The cost of capital declines when the degree of financial leverage increases." Who advocated it?
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Answer & Solution
Answer: Option B
No explanation is given for this question. Let's Discuss on Board
72
Which of the following factor(s) is/are responsible for overcapitalisation?
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Answer & Solution
Answer: Option C
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73
In case cost of capital is 10%, EPS is Rs. 10, IRR is 8%, and Retention Ratio is 60%, then the value of equity share as per Gordon's Model will be
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Answer & Solution
Answer: Option D
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74
Trading on equity refers to the following situation
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Answer & Solution
Answer: Option C
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75
In capital budgeting, the term capital rationing implies
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Answer & Solution
Answer: Option B
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76
Which of the following is not an application of working capital?
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Answer & Solution
Answer: Option D
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77
Positive NPV in project appraised by a firm may not occur an account of
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Answer & Solution
Answer: Option D
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78
A firm wants to know the Degree of Operating Leverage (DOL). They have the following information
Current level of sales: 6,000 units
Break-even point sales: 4,000 units
What would be the DOL?
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Answer & Solution
Answer: Option C
No explanation is given for this question. Let's Discuss on Board
79
Financial leverage is measured by:
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Answer & Solution
Answer: Option B
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80
The concepts of cost of capital is/are very important from which point of view?
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Answer & Solution
Answer: Option C
No explanation is given for this question. Let's Discuss on Board