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 […]

List-A List-B a. A lender buys securities to protect him from a falling interest rate 1. Interest rate collar b. A borrower buys securities to protect himself from rising interest rate 2. Interest rate cap c. A combination of interest rate cap and floor 3. Interest rate corridor d. A combination of two or more […]

List-I (Statement) List-II (Terms) a. Preventing hostile takeover 1. Management buyout b. Leveraged buyout 2. Green mail c. Accounting for merger 3. Pooling of interest d. Financing for merger 4. Cash offer

List – I (Statement) List – II (Term) I. A combination of two puts and one call with the same exercise price and expiration date. 1. Strap II. A combination of one put and two calls with the same exercise price and expiration date. 2. Strip III. A portfolio of put and call with the […]

List – I List – II (a) Rate of discount which equates the net present value to zero. (i) Payback period (b) Ratio of present value of cash inflows to the cash outflow. (ii) Internal Rate of Return (c) Percentage of annual net income earned on average fund invested in a project (iii) Profitability Index […]

List – I  (Functions of Finance) List – II (Significance) a. Financial Statements  1. Check on Financial Activities b. Administration of Tax 2. Reduction of Tax Liability c. Internal Audit 3. Allocation of Fund d. Budgeting 4. Income Statement

List – I List – II i. Net income approach for capital structure a. Modigliani, M. and Miller M.H.   ii. Net operating income approach for capital structure   b. Robert Bruner   iii. Irrelevance of capital structure for the value of the firm. c. Ezra Soloman iv. FRICT analysis for capital structure d. David […]