List – I List – II a. M.M. Hypothesis without taxes   i. The cost of debt and cost of equity are assumed to be independent to the capital structure. b. Net operating income approach   ii. In the absence of taxes a firm’s market value and the cost of capital remain invariant to the […]

List-I List-II (a) Liquidity Risk   (i) Refers to the chance that the firm will be unable to recover its dues from its debtors. (b) Financial Risk (ii) Refers to the possibility of adverse effect on firm’s assets, liabilities and income due to movement of interest rates. (c) Exchange Risk   (iii) Refers to the […]

List (I) (Credit Rating Agency) List (II) (Year of Establishment) (a) CRISIL (i) 1860 (b) Moody’s Investors Service (ii) 1909 (c) Standard and Poor (iii) 1914 (d) Fitch Ratings (iv) 1987

(a) It considers all the cash flows from the project (b) It gives more weightage to distant flows than near-term flows (c) It considers the time value of money