Business Finance - Study Mode
[#231] The degree of super-leverage would be calculated by
Correct Answer
(C) Multiplying DOL and DFL
[#232] Forward contracts are risky because they
Correct Answer
(D) Both A and B are true
[#233] When domestic currency appreciates, it benefits . . . . . . . . and harms . . . . . . . .
Correct Answer
(D) domestic importer, domestic exporter
[#234] Match the following. List-I List-II a. Depreciation funds 1. Its use has increased in recent years due to use of trade squeeze b. Provision for taxation 2. Some authors do not accept them as a source of funds, but it is not reasonable c. Accrued expenses 3. It can be used during the intermittent period d. Trade credit 4. The firm can postpone the payment of expenses for short periods
Correct Answer
(B) a-2, b-3, c-4, d-1
[#235] The beta factor is a measure of systematic risk. It means the element of risk cannot be avoided by
Correct Answer
(B) Diversification