Financial Management MCQ Questions and Solutions with Explanations | Commerce

A. Net Income Approach

B. Net Operating Income Approach

C. Traditional Approach

D. All of the above

A. Total Sales

B. Average Payables

C. Current Ratio

D. Bad Debt loss

A. Equity shares

B. Loans

C. Bonds

D. Preference shares

A. Cost of Equity

B. Cost of Debt

C. WACC & k_d

D. k_e and k_d

A. Cash flow position

B. Profit position

C. Paid up capital

D. Retained earnings

A. Sales

B. Debtors

C. Debt collection period

D. All of the above

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

A. Expansion Programme

B. Merger

C. Replacement of an Asset

D. Inventory Level

A. Flotation Cost

B. Dividend

C. Required Rate of Return

D. None of the above

A. Dividend and Bonus

B. Dividend and Capital Issue

C. Profit and Investment

D. None of the above