(a) Capital markets are perfect (b) Firms belong to equal risk class (c) There is 100% dividend payout ratio (d) There are nominal corporate taxes

(a) a merger (b) an amalgamation (c) a takeover (d) an absorption

Assertion (A) : Risk analysis of capital investment is the most complex and controversial area in finance. Reasoning (R) : Capital investment decisions are based on estimates of future cash inflows.

(a) Investment decisions (b) Financing decisions (c) Pricing decisions (d) Profit distribution decisions

(a) Average annual net income earned divided by the investment (b) Equating annual net cash inflows to investment (c) Ratio of present value of future cash inflows to investment making it equal to zero (d) Ratio of present value of future cash inflows to present cash outflows  

(I) : The stream of dividends expected during investor’s ownership. (II) : The price expected to be realized whenever investor sells the share.