Financial Management

Which of these is not a part of Capital Structure?

• Equity Shares

• Debentures

• Short term Borrowings

• Bonds

What is the cost of capital?

• 1. Cost of the company funds

• 1. Cumulative calculation of the capital structure

• 1. Cost of capital investment in the company 

• 1. Cost of the products or services of the company 

The primary goal of financial management is

• To maximize the returns

• To minimize the risk

• To maximize the wealth of owners

• To maximize profit

Which of the following is true for NI approach of capital structure

• Higher debts increases value of the firm

• Lower debt increases WACC

• Higher equity increases value of the firm

• All of the above

NI and NOI approach of capital structure is suggested by

• F. W. Taylor

• Marshall Edgeworth

• David Durand

• Fisher

Which of the following is also known as intermediate approach

• NI Approach

• NOI Approach

• MM Approach

• Traditional Approach

If taxes are ignored, MM approach is identical to

• NI Approach

• Traditional Approach

• NOI Approach

• Non of the above

Which of the following figure is irrelevant while calculating cost of redeemable preference shares?

• Floatation cost

• Discount

• EPS

• Net proceeds

While calculating the WACC, cost of each component of the capital is weighted –

• In the ratio of 1:2:3:4

• By the relative proportion of that type of funds in the capital structure.

• By the relative proportion of that type of funds to total assets in the company

• None

Which of the following is not an important financial management decision

• Liquidity decision

• Investing Decision

• Assets Management Decision

• Dividend Decision