Business Finance - Study Mode
[#161] Match the items of the following two lists and suggest the correct answer: List-I List-II a. Realized Yield Method 1. Cost of equity share capital b. Taxation 2. Cost of equity capital c. Cost of total capital employed 3. Cost of debt capital d. Dividend growth is a consideration 4. Weighted cost of capital
Correct Answer
(C) a-2, b-3, c-4, d-1
[#162] The weighted average of possible returns, with the weights being the probabilities of occurrence is referred to as . . . . . . . .
Correct Answer
(B) Expected return
[#163] The cost of capital of a firm is
Correct Answer
(D) The minimum rate of return it must earn on investments to keep its investors satisfied
[#164] Which of the following is the variability of return on stocks or portfolios associated with changes in return on the market as a whole?
Correct Answer
(A) Systematic risk
[#165] The modern approach to financial management is (i) The total fund requirement of the firm. (ii) The asset to be acquired. (iii) The payment of dividend to the shareholders.
Correct Answer
(D) (i), (ii) and (iii)