Q. Capital budgeting is the process of making investment decisions in the ----------
✅ Correct Answer: (D)
Capital expenditure
Financial Management MCQs and Notes
Q. Capital budgeting means ----------------------------
✅ Correct Answer: (A)
Planning for capital asset
Q. Face value per debenture less issue expenses equal to ---------------
✅ Correct Answer: (A)
Net proceeds per debentures
Q. Earnings means -----------------------
✅ Correct Answer: (A)
Profit
Q. Stock is --------------------
✅ Correct Answer: (A)
Current asset
Q. Conversion means
✅ Correct Answer: (D)
Debenture holders are allotted equity shares
Q. Refunding means
✅ Correct Answer: (D)
Issue new debentures in place of old debentures
Q. The redemption means
✅ Correct Answer: (A)
The payment of amount
Q. Term loans are those loans which are payable after one or more ______________
✅ Correct Answer: (A)
years
Q. A company should arrange the capital structure in such a way that there is maximum flexibility in the capital and cost of capital is
✅ Correct Answer: (B)
Minimum