A firm has inventory turnover of 6 and cost of goods sold is Rs. 7,50,000. With better inventory management, the inventory turnover is increased to 10. This would result in
| A. | Increase in inventory by Rs. 50,000 |
| B. | Decrease in inventory by Rs. 50,000 |
| C. | Decrease in cost of goods sold |
| D. | Increase in cost of goods sold. |
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Option: B Explanation : Click on Discuss to view users comments. |
Expected Return on the market is 16% and Risk free rate is 6%. Which of the following projects be accepted?
| A. | β =0.50, Return = 11.5% |
| B. | β = 1.25, Return = 18.0% |
| C. | β = 1, Return = 15.5% |
| D. | β = 2, return = 25.0% |
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Option: A Explanation : Click on Discuss to view users comments. |
Which of the following will cause an increase in bond values?
| A. | Decrease in Redemption Amount |
| B. | Decrease in Coupon Rate |
| C. | Increase in Redemption Amount |
| D. | Increase in Redemption Period. |
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Option: C Explanation : Click on Discuss to view users comments. |
Which of the following is the variability of the return from a share associated with the market as a whole?
| A. | Unsystematic |
| B. | Avoidable |
| C. | Systematic |
| D. | None of the above |
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Option: C Explanation : Click on Discuss to view users comments. |
Cost of Equity Share Capital is more than cost of debt because
| A. | Face value of debentures is more than face value of shares |
| B. | Equity shares have higher risk than debt |
| C. | Equity shares are easily saleable |
| D. | All of the three above |
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Option: B Explanation : Click on Discuss to view users comments. |
