Classical

Advanced Questions - Section 4

31:  

Cost of Capital for Bonds and Debentures is calculated on

A.

Before Tax basis

B.

After Tax basis

C.

Risk-free Rate of Interest basis

D.

None of the above.

 
 

Option: B

Explanation :

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32:  

If the sales of the firm are Rs. 60,00,000 and the average debtors are Rs. 15,00,000 then the receivables turnover is

A.

4 times

B.

25%

C.

400%

D.

0.25 times

 
 

Option: A

Explanation :

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33:  

Working Capital Turnover measures the relationship of Working Capital with

A.

Fixed Assets

B.

Sales

C.

Purchases

D.

Stock.

 
 

Option: A

Explanation :

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34:  

A firm has EBIT of Rs. 50,000. Market value of debt is Rs. 80,000 and overall capitalization rate is 20%. Market value of firm under NOI Approach is

A.

Rs. 2,50,000

B.

Rs. 1,70,000

C.

Rs. 30,000

D.

Rs. 1,30,000

 
 

Option: B

Explanation :

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Chidananda H L said: (8:42am on Sunday 1st October 2017)
As per my knowledge V=EBIT/Ko is the formula to calculate value of the according to the given information. If we simply above formula by using given data 50000/.20= 250000.

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35:  

Cost of Redeemable Preference Share Capital is

A.

Rate of Dividend

B.

After Tax Rate of Dividend

C.

Discount Rate that equates PV of inflows and outflows relating to capital

D.

None of the above.

 
 

Option: B

Explanation :

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