Which of the following techniques for appraisal of investment proposals are based on time value of money ?
(a) Accounting Rate of Return
(b) Internal Rate of Return
(c) Profitability Index Method
(d) Earnings Per Share
Codes:
A. | (a) and (b) |
B. | (b) and (c) |
C. | (a) and (d) |
D. | (a), (b) and (d) |
Option: B Explanation : Click on Discuss to view users comments. |
On the basis of the following information, what will be the EBIT corresponding to financial indifference point ?
Total capital outlay Rs 60,00,000
Financing Plans
(a) 100% Equity @ Rs 10/- per share
(b) Debt - equity ratio 2 : 1
Rate of interest 18% p.a., corporate tax rate 40%
A. | Rs 10,00,000 |
B. | Rs 12,00,000 |
C. | Rs 10,80,000 |
D. | Rs 12,80,000 |
Option: C Explanation : Click on Discuss to view users comments. |
Which one of the following assumptions is not included in the James E. Walter Valuation model ?
A. | All financing by retained earnings only |
B. | No change in the key variables such as EPS and DPS |
C. | The firm has finite life |
D. | All earnings are either distributed as dividends or invested internally immediately |
Option: C Explanation : Click on Discuss to view users comments. |
Statement - I : |
Working capital leverage measures the responsiveness of Return on Equity for changes in current Assets. |
Statement - II : |
When the annual demand for an item is 3200 units, unit cost Rs 6, inventory carrying charges 25% p.a. and cost of one procurement Rs 150, the economic ordering quantity would be 700 units. |
Codes |
|
A. | Both statements are correct |
B. | Both statements are incorrect |
C. | Statement - I is correct and Statement - II is incorrect |
D. | Statement - I is incorrect and Statement - II is correct |
Option: B Explanation : Click on Discuss to view users comments. |
Match the items of List - I with the items of List - II :
List – I |
List – II |
Conventional HRM |
Strategic HRM |
(a) Staff specialists |
(i) Fast and proactive |
(b) Slow and reactive |
(ii) People and knowledge |
(c) Capital and products |
(iii) Line managers |
(d) Cost Centre |
(iv) Investment Centre |
Codes: |
|
A. | (ii) (i) (iii) (iv) |
B. | (ii) (iii) (i) (iv) |
C. | (iii) (ii) (i) (iv) |
D. | (i) (ii) (iii) (iv) |
Option: B Explanation : Click on Discuss to view users comments. |