Assertion (A) : The investors in the capital market have been showing a decisive shift in favour of fixed income instruments.
Reason (R) : The dept. instruments have active secondary market.
A. | Both A and R are true and R is the correct explanation of A |
B. | Both A and R are true but R is not a correct explanation of A |
C. | A is true but R is false |
D. | A is false but R is true |
Option: C Explanation : Click on Discuss to view users comments. |
Return on assets can be computed by
A. | Annual Net Income/Average total Assets |
B. | Sales/Cost of Sales x 100 |
C. | Income/Sales x 100 |
D. | Sales/Net Income |
Option: A Explanation : Click on Discuss to view users comments. |
Capital Employed is
A. | Cash + Bank |
B. | Shareholders Funds + Long Funds |
C. | Assets + Cash |
D. | Bank |
Option: B Explanation : Click on Discuss to view users comments. |
Which is a capital expenditure?
A. | Research and Development Project |
B. | Project Generation |
C. | Project Expansion |
D. | All of the above |
Option: D Explanation : Click on Discuss to view users comments. |
Which of the following recognises risk in capital budgeting analysis by adjusting estimated cash flows and employs risk-free rate to discount the adjusted cash flows?
A. | Cash |
B. | Certainty Equivalent Approach |
C. | Pay-back Period |
D. | Inventory |
Option: B Explanation : Click on Discuss to view users comments. |