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. |
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Option: B Explanation : Click on Discuss to view users comments. |
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 |
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Option: A Explanation : Click on Discuss to view users comments. |
Working Capital Turnover measures the relationship of Working Capital with
| A. | Fixed Assets |
| B. | Sales |
| C. | Purchases |
| D. | Stock. |
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Option: A Explanation : Click on Discuss to view users comments. |
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 |
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Option: B Explanation : Click on Discuss to view users comments. Chidananda H L said: (10:42pm on Saturday 30th September 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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