(A) Reinvestment of Earnings (B) New issue of Equity (C) Issue of debt Choose the correct answer from the options given below:
List I List II Capital Structure Preposition Description(s) (A) Target Capital Structure (I) Expected yield on the equity capital is equal to the pure equity return plus a premium (B) Optimum Capital Structure (II) Its refers to the perceived costs due to increased ratio of debt in the firm (C) Cost of financial distress (III) […]
(A) Overleveraged businesses (B) Cash rich businesses (C) Uncertain market conditions (D) Stable market conditions Choose the most appropriate answer from the options given below:
a.Harry Markowitz i. Dividend Theory b. David Durand ii. CAPM c. Dow iii. Capital structure d. M.J. Gordon iv. Technical Analysis
(i) Net present value method I. Inflow after interest and tax (ii) Average rate of return II. Discounted cash flow (iii) Internal rate of return III. Traditional method (iv) Pay back method IV. Decision based on cut-off rate
List – I List – II a. Dividend Capitalisation Model i. John Lintner b. Dividend Relevance Model ii. James E. Walter c. Dividend Irrelevance Model iii. Myron Gordon d. Dividend Payout Model iv. Modigliani & Miller
List I List II a. The technique used in examining the effect of change in one variable at a time i. Hillier Model b. The process of developing the frequency distribution of Net Present Value ii. Sensitivity Analysis c. The technique used in examining the chances of Net Present Value being greater than zero […]
List I List II a. The Net Income Approach i. The market value of the firm is not affected by changes in the capital structure b. The Net Operating Income Approach ii. Declining weighted-average cost of capital c. The Modigliani & Miller Proposition – I iii. The firms prefer to rely on internal accruals […]
List – I (Term) List – II (Statement) I. Independent floating exchange rate. 1. Fiat money II. Exchange rate depending entirely on market forces. 2. Clean float III. Floating exchange rate regime where the monetary authorities interfere in the foreign exchange market for stabilizing exchange rate. 3. Managed float IV. Non-convertible paper currency. 4. Free […]