Financial Management - Study Mode

[#306] Cost Capital for Equity Share Capital does not imply that:
Correct Answer

(D) AC of the three above

[#307] Which of the following is not considered in Lintner's Model?
Correct Answer

(D) Preceding year EPS

[#308] If the intrinsic value of a share is less than the market price, which of the most reasonable?
Correct Answer

(B) That market is over valuing the shares

[#309] If deposited money Rs 10,000 in bank pays interest 10% annually, an amount after five years will be
Correct Answer

(A) Rs 16,105.14

Explanation

Solution: FV = PV ( 1 + r/100 )ⁿ = 10000 ( 1 + 10/100)⁵ = Rs 16,105.14

[#310] Student loans, mortgages and car loans are examples of
Correct Answer

(B) deferred annuity

Explanation

Solution: Student loans, mortgages and car loans are examples of deferred annuity. A deferred payment annuity is an insurance product that provides future payments to the buyer rather than an immediate stream of income.