Under the terms of finance lease
A. the lessor is responsible for service and maintenance of the asset
B. it is cancellable
C. legal title to the assets with the lessee
D. the asset is capitalised in the balance sheet of the lessee
Answer: Option D
A. the lessor is responsible for service and maintenance of the asset
B. it is cancellable
C. legal title to the assets with the lessee
D. the asset is capitalised in the balance sheet of the lessee
Answer: Option D
The appropriate ratio for indicating liquidity crisis is
A. Operating ratio
B. Sales turnover ratio
C. Current ratio
D. Acid test ratio
A. Net present value method
B. Internal rate of return method
C. Profitablity index method
D. None of the above
A. a-4, b-3, c-1, d-2
B. a-3, b-4, c-1, d-2
C. a-2, b-3, c-1, d-4
D. a-3, b-2, c-4, d-1
Which one of the following assumptions is not included in the James E. Walter Valuation model?
A. All financing by retained earnings only
B. No change in the key variables such as EPS and DPS
C. The firm has finite life
D. All earnings are either distributed as dividends or invested internally immediately
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