Financial Management - Study Mode
[#301] 80% of sales of Rs. 10,00,000 of a firm are on credit. It has a receivable turnover of 8. What is the average collection period (360 days a year) and average debtors of the firm?
Correct Answer
(A) 45 days and Rs. 1,00,000
[#302] Marginal cost of capital is the cost of:
Correct Answer
(B) Additional Funds
[#303] In capital budgeting, the term Capital Rationing implies:
Correct Answer
(B) That limited funds are available for investment
[#304] Debt Financing is a cheaper source of finance because of:
Correct Answer
(C) Tax-deductibility of Interest
[#305] Payment to creditors is a manifestation of cash held for:
Correct Answer
(A) Transactionary Motive