Business Finance - Study Mode

Show All Answers

[#361] Dividend irrelevance hypothesis implied in the

(A) Traditional model

(B) Walter model

(C) Gordon model

(D) M. M. model

Correct Answer

(D) M. M. model

[#362] The international monetary system went through several distinct stages of evolution. These stages are summarised, in alphabetic order, as follows 1. Bimetallism 2. Brettonwoods system 3. Classical gold standard 4. Flexible exchange rate regime 5. Interwar period The chronological order that they actually occurred is

(A) 3, 1, 4, 2, 5

(B) 1, 3, 5, 2, 4

(C) 4, 1, 3, 2, 5

(D) 5, 2, 1, 3, 4

Correct Answer

(B) 1, 3, 5, 2, 4

[#363] If we move from present value to calculate the future value, we can use the concept of compounding rate. If we were to move from future value towards the calculation of present value, the concept used will be

(A) Compounding rate of interest

(B) Simple rate of interest

(C) Discount rate

(D) Anyrate can be used

Correct Answer

(C) Discount rate

[#364] Who proposed a model to apply economic order quantity concept of inventory mangement to determine the optimum cash holding in a firm?

(A) Keith V. Smith

(B) Miller and Off

(C) William J. Baumol

(D) J. M. keynea

Correct Answer

(C) William J. Baumol

[#365] The cost of capital from all the sources of funds is called

(A) Specific cost

(B) Composite cost

(C) Implicit cost

(D) Simple Average cost

Correct Answer

(B) Composite cost