Business Finance - Practice Test

(A) bonus share

(B) equity shares

(C) preference shares

(D) debt

(A) bonus share

(A) These firms are called growth firms, they should have a hundred per cent payout ratio

(B) These firms are called growth firms, they should have a zero payout ratio

(C) The firm is indifferent towards how much is to be retained and how much is to be distributed among the shareholders

(D) There is no method to show relationship between returns and cost under Walter's Model

(B) These firms are called growth firms, they should have a zero payout ratio

(A) The opportunity cost of input is considered in capital budgeting

(B) Capital budgeting decisions are reversible in nature

(C) Cash flows and accounting profits are different

(D) An expansion decision is a capital budgeting decision

(B) Capital budgeting decisions are reversible in nature

(A) Net Operating Income Approach

(B) Net Income Approach

(C) Modigliani-Miller Approach

(D) Traditional Approach

(B) Net Income Approach

(A) High promotion expenses

(B) Liberal dividend policy

(C) Both A and B

(D) None of the above

(C) Both A and B

Business Finance - Study Mode