21. The conservative approach is a risk-free strategy of working capital financing that helps in maintaining a higher level of current assets and higher working capital. Which of the following is consistent with a conservative approach to financing working capital?
22. Funds required for purchasing current assets is an example of
23. Which of the followingis not a clear difference between debenture holders and shareholders of a company?
24. Which of the following is not used to estimate cost of equity capital?
25. Dividend capitalization model was developed by
26. Finance leases are accounted for in a similar manner to
27. Assertion (A): Weighted average cost of capital should be used as a hurdle rate for accepting or rejecting a capital budgeting proposal.
Reason (R): It is because by financing in the proportions specified and accepting the project, yielding more than the weighted average required return, the firm is able to increase the market price of its stock.
Reason (R): It is because by financing in the proportions specified and accepting the project, yielding more than the weighted average required return, the firm is able to increase the market price of its stock.
28. Which of the following can be defined as the example of direct finance?
29. Which of the following is a long-term lease that is not cancelable and its life often matches the useful life of the asset?
30. Which capital investors are long-term investors who are prepared to take the risk that the entrepreneurial projectcan fail?
Read More Section(Business Finance)
Each Section contains maximum 100 MCQs question on Business Finance. To get more questions visit other sections.