Question:

Which of the following is not applicable to IRR?

A.

considers all cash flows

B.

based on time value of money

C.

common for all projects

D.

stated in % return

Answer» c. common for all projects

Question:

In case of Mutually Exclusive proposals

A.

only the best project is selected

B.

all projects with positive npv is are selected

C.

even negative npv project may be selected

D.

at least two proposals are selected

Answer» a. only the best project is selected

Question:

Rights issue is also called as —–

A.

privileged subscription.

B.

equity shares

C.

stock dividend.

D.

bonus shares

Answer» a. privileged subscription.

Question:

Members of recognised stock exchanges are termed as

A.

brokers

B.

underwriters

C.

shareholder s

D.

lead managers.

Answer» a. brokers

Question:

In weighted average cost of capital, rising in interest rate leads to-

A.

increase in cost of debt

B.

increase the capital structure

C.

decrease in cost of debt

D.

decrease the capital structure

Answer» a. increase in cost of debt

Question:

Goodwill is an example of —- asset

A.

tangible.

B.

intangible.

C.

fictitious

D.

current

Answer» b. intangible.

Question:

Which of the following is not included in incremental A flows?

A.

opportunity costs

B.

sunk costs

C.

change in working capital

D.

inflation effect

Answer» a. opportunity costs

Question:

Cash credit and overdrafts is considered as NPA when is remains out of order for more than:

A.

90 days

B.

30 days

C.

60 days

D.

45 days

Answer» a. 90 days

Question:

…… increases the number of shares without actually increasing the paid – up value of the share capital.

A.

consolidation of shares.

B.

stock split- ups

C.

bonus issue

D.

rights issue

Answer» b. stock split- ups

Question:

Payback period Technique is based on

A.

all cash flows

B.

only higher cash flows

C.

earlier cash flows

D.

selected cash flows

Answer» c. earlier cash flows