List I List II (a) High levered fund (i) Market risk (b) Increase in bank rate (ii) Purchasing power risk (c) Inflation (iii) Financial risk (d) Political instability (iv) Interest rate risk
I. The company has a very long or perpetual life II. All earnings are either invested internally or distributed as divided III. There is not floatation cost for the company IV. Cost of capital of the company is constant Codes:
I. Profitability index II. Net present value III. Accounting rate of return IV. Internal rate of return Codes:
I. Failures to adapt changes II. Enhancement in credit-worthiness of the firm III. Reduced availability of trade and cash discounts IV. Reduced volume of sales Codes: