Business Finance - Study Mode

[#106] Which method of stock repurchase occurs when the buyer purchases securities through a brokerage house?
Correct Answer

(C) Open-market

[#107] A portfolio having two risky securities can be turned risk less, if
Correct Answer

(C) the securities are completely negatively correlated

[#108] Indicate the correct combination of discounting techniques from the following techniques of capital budgeting decision. I. Profitability Index II. Net Present Value III. Accounting Rate of Return IV. Internal Rate of Return
Correct Answer

(C) I, II, IV

[#109] Which of the following is not a source of conflict in the project ranking in capital budgeting decision as per NPV and IRR?
Correct Answer

(D) None of the above

[#110] How should the Minimum Lease Payment (MLP) of a land and building lease get apportioned?
Correct Answer

(C) Apportion MLP between land and buildings based on fair value of leasehold interests