Business Finance - Study Mode
[#476] A company has issued 10% perpetual debt of Rs. 1 lac at 5% premium. If the tax rate is 30%, then the cost of debt will be
Correct Answer
(C) 6.66%
[#477] Under a flexible exchange rate regime, governments can retain monetary policy independence because the external balance will be achieved by
Correct Answer
(A) the exchange rate adjustments
[#478] Risk of a portfolio can be minimized by which one of the following?
Correct Answer
(B) Combining two securities having a perfect negative correlation in their expected returns
[#479] Which of the following methods of capital budgeting assumes that cash-inflows are reinvested at the project's rate of return?
Correct Answer
(C) Internal Rate of Return
[#480] By hedging a portfolio, a bank manager
Correct Answer
(A) reduces interest rate risk