21. The issues in international capital budgeting include
1. Exchange rate risk
2. Political risk
3. Geographical risk
4. Parent vs project cash flow
1. Exchange rate risk
2. Political risk
3. Geographical risk
4. Parent vs project cash flow
22. Which of the following sources of finance has an implicit cost ofcapital?
23. Negative net working capital means assets are not being used effectively, and a company may face a liquidity crisis. This implies
24. When assessing economic exposure, financial managers should consider how variations in exchange rates influence . . . . . . . .
25. Dividend irrelevance argument of MM model is based on
26. Negative net working capital implies that
27. Which of the following is not true with reference to capital budgeting?
28. The conflicts in project ranking in capital budgeting as per NPV and IRR may arise because of
29. What are the main objectives of financing decision?
1. To get optimal working capital figure.
2. To get optimal capital structure.
3. To make the company exposed to high risk.
4. To keep the cost of capital lowest.
5. To make the value of share highest.
1. To get optimal working capital figure.
2. To get optimal capital structure.
3. To make the company exposed to high risk.
4. To keep the cost of capital lowest.
5. To make the value of share highest.
30. Assertion (A): The important aspect of dividend policy is to determine the amount of earnings to be distributed to shareholders and the amount to be retained in the firm.
Reason (R): Dividend policy of the firm has its effect on both the long term financing and the wealth of shareholders.
Reason (R): Dividend policy of the firm has its effect on both the long term financing and the wealth of shareholders.
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