Business Finance - Study Mode
[#296] Total of all current assets is called
Correct Answer
(A) gross working capital
[#297] Which one of the following equates the present value of cash out flows and the present value of expected cash inflows from a project?
Correct Answer
(B) Internal Rate of Return
[#298] Formula for net cash inflow of a project is
Correct Answer
(C) Net profit after tax + Depreciation
[#299] Which of the following facts are true in the context of forfaiting? 1. Forfaiting enables exporters to receive immediate cash by selling their medium and long-term receivables - the amount an importer owes the exporterat a discount through an intermediary. 2. Banks never function as forfaiters. 3. Forfaiting protects against credit risk, transfer risk, and the risks posed by foreign exchange rate or interest rate changes.
Correct Answer
(C) 1 and 3
[#300] Cost of equity share capital is more than cost of debt because
Correct Answer
(D) Equity shares have high risk than debts