Business Finance - Study Mode

[#301] Which one of the following is an internal hedging technique?
Correct Answer

(C) Both A and B

[#302] For the computation of cost of equity, arrange the following measures in the ascending order of accuracy 1. Capital Asset Pricing Model 2. Dividend-Price Ratio 3. Earning-Price Ratio 4. Dividend-Price Plus Growth Ratio
Correct Answer

(C) 3, 2, 4, 1

[#303] It is very difficult to interpret news in foreign exchange markets because
Correct Answer

(B) It is difficult to know which news is relevant to future exchange rates

[#304] Hedging transaction is indicated by
Correct Answer

(D) None of the above

[#305] The advantage of forward contracts over future contracts is that they
Correct Answer

(D) None of the above