List – I List – II i. Sale of existing firm to the management a. Reverse synergy ii. Financing acquisition with substantial secured borrowings b. Management buyout iii. Firms demerged worth more to other firms c. Reverse capital budgeting iv. Cash inflows on demerger at present at the sacrifice in form of cash out-flow on […]
List – I List – II i. Concentration Banking a. William J. Baumol ii. Optimum cash balance under certainty b. Cash collection technique iii. Playing the float c. Miller M.H. and Orr D iv. Optimum cash balance under uncertainty d. Cash disbursement technique
(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. Net present value i. Number of years required to recover the original cash outlay invested in a project. b. Payback period ii. It is the rate of return which equates the present value of anticipated net cash flows with the initial outlay. c. Internal rate of return […]
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