Business Finance - Study Mode
[#406] Which of the following statements is not correct?
Correct Answer
(C) Cost of capital does not comprise any risk premium
[#407] Match the following. List-I List-II a. Net income approach 1. Also known as 'Intermediate Approach' b. Net operating income approach 2. Change in the capital structure of a company does not affect the market value of the company and overall cost of capital c. Traditional approach 3. It provide analytical sound and logically consistent behavioural justification for their hypothesis d. Modigliani Miller approach 4. A firm can minimise the overall cost of capital by using debt financing to the maximum extent
Correct Answer
(A) a-4, b-2, c-1, d-3
[#408] Dividend policy of a company mainly concerns with 1. Dividend payout and/or 2. Stability of dividend Select the correct answer using the options given below
Correct Answer
(C) Both 1 and 2
[#409] The risks that cannot be eliminated by diversification are
Correct Answer
(A) Relevant
[#410] If NPV is positive, the IRR will be
Correct Answer
(C) K < R