Q. According NO1 theory ,value of firm is
✅ Correct Answer: (B)
Not related to its capital structure
Financial Management MCQs and Notes
Q. According NO1 theory, increase in EBIT will
✅ Correct Answer: (A)
Increase the value of the firm
Q. Capital composition of a company including long term, medium term and short term finances
✅ Correct Answer: (D)
Financial structure
Q. The ratio between debt and equity in the total capitalization is called
✅ Correct Answer: (A)
Capital gearing
Q. The weighted average cost of new or additional capital is called
✅ Correct Answer: (C)
Marginal cost
Q. In the case of existing shares cost of equity is computed under dividend yield method by dividing dividend per share with
✅ Correct Answer: (B)
Market value
Q. Dividend yield method the cost of equality is ascertained as a percentage of
✅ Correct Answer: (A)
Expected dividend
Q. In India ,preference shares must be redeemed within a period
✅ Correct Answer: (C)
10 years of issue
Q. Ratio analysis is based on __________ measure.
✅ Correct Answer: (A)
relative
Q. Ratio analysis is the process of determining and interpreting numerical relationships based on _______.
✅ Correct Answer: (D)
All of the above