Business Finance - Business Finance Section 1

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6.

The relationship between the cost of equity and financial leverage in accordance with MM proposition II can be expressed by

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7. The call-option value of a callable bond is likely to be high when

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8. A project's profitability index is equal to the ratio of the _______ of a project's future cash flows to the project's ______.

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9.

Earning Yield computed by

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10. Match the following

List-I (Items)         List-II (Features)
(A) Capital budgeting decision         1. Fixed Assets
(B) Cash Position Ratio        2. Liquid Ratio
(C) EOQ                                       3. Inventory Control
(D) Cost of Capital                    4. Issue Expenses
     5. Planning

CODES

 ABCD
I5143
II3142
III1234
IV1324

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