Which of the following is incorrect for value of the firm?
A. In the initial preposition, MM Model argues that value is independent of the financing mix
B. Total value of levered and unlevered firms is otherwise arbitrage will take place
C. Total value incorporates borrowings by firm but excludes personal borrowing
D. Total value does not change because underlying does not change with financing mix
Answer: Option D
This Question Belongs to Commerce >> Financial Management
Investment is the _______________.
A. net additions made to the nation’s capital stocks
B. person’s commitment to buy a flat or house
C. employment of funds on assets to earn returns
D. employment of funds on goods and services that are used in production process
Financial Management is mainly concerned with ______________.
A. All aspects of acquiring and utilizing financial resources for firms activities
B. Arrangement of funds
C. Efficient Management of every business
D. Profit maximization
The primary goal of the financial management is ____________.
A. to maximize the return
B. to minimize the risk
C. to maximize the wealth of owners
D. to maximize profit
In his traditional role the finance manager is responsible for ___________.
A. proper utilisation of funds
B. arrangement of financial resources
C. acquiring capital assets of the organization
D. efficient management of capital
Join The Discussion