Which of the following method of incorporation of risk in the capital budgeting decision framework is useful for situations in which decisions at one point of time also affect the decisions of the firm at some later date? Continue reading →
In which case, the acquirer puts pressure on the management of the target company by threatening to make an open offer; the board capitulates straight away and agrees for settlement with the acquirer for change of control. Continue reading →
In which of the approach, the market value of the firm depends upon the EBIT and the overall cost of capital Continue reading →
The formula used for valuation of equity shares with assumption of normal growth in dividend is: Continue reading →
The annual credit sales of a firm is Rs. 12, 80,000 and the debtors amount to Rs. 1, 60,000. The debtors turnover and average collection period are _____. Continue reading →
The following data are available from the annual report of a company : Current Assets Rs. 4,80,000; Current Liabilities Rs. 3,00,000; Average total assets Rs. 20,00,000; Operating income Rs. 2,40,000; Average total equity Rs. 8,00,000; Net income Rs. 80,000.Which of the following statement is correct? Continue reading →
This cost arises out of the failure of the customers to meet their obligations when payment on credit sales becomes due after the expiry of the credit period. Continue reading →
A firm’s inventory planning period is one year. Its inventory requirement for this period is 400 units. Assume that its acquisition costs are Rs. 50 per order. The carrying costs are expected to be Rs. 1 per unit per year for an item. What is EOQ? Continue reading →
