Financial Management - Practice Test

(A) Equity shares

(B) Loans

(C) Bonds

(D) Preference shares

(A) Equity shares

(A) Cost of Equity

(B) Cost of Debt

(C) WACC & k d

(D) k e and k d

(C) WACC & k d

(A) Cash flow position

(B) Profit position

(C) Paid up capital

(D) Retained earnings

(D) Retained earnings

(A) Sales

(B) Debtors

(C) Debt collection period

(D) All of the above

(A) Sales

(A) In the initial preposition, MM Model argues that value is independent of the financing mix

(B) Total value of levered and unlevered firms is otherwise arbitrage will take place

(C) Total value incorporates borrowings by firm but excludes personal borrowing

(D) Total value does not change because underlying does not change with financing mix

(D) Total value does not change because underlying does not change with financing mix

Financial Management - Study Mode