Financial Management - Study Mode

[#781] Dividend per share is Rs 15 and sell it for Rs 120 and floatation cost is Rs 3.0 then component cost of preferred stock will be
Correct Answer

(C) 12.82%

[#782] In pure play method, a company can calculate its own cost of capital with help of averaging an
Correct Answer

(B) other company beta

Explanation

Solution: In pure play method, a company can calculate its own cost of capital with help of averaging an other company beta. Pure play method is an approach used to estimate beta coefficient of a company whose stock is not publicly traded.

[#783] Concentration Banking helps in:
Correct Answer

(B) Increasing Collection

[#784] In case of Net Income Approach, when the debt proportion is increased, the cost of debt:
Correct Answer

(C) Constant

[#785] Risk in Capital budgeting implies that the decision-maker knows . . . . . . . . of the cash flows.
Correct Answer

(B) Probability