Financial Accounting - Financial Accounting MCQ

36:  
In case the finn is all equity financed, WACC would be equal to
A.

Cost of Debt

B.

Cost of Equity

C.

Neither

D.

Both (A) and (B)

 
 

Option: B

Explanation :

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37:  
Which is the importance of the concept of cost of capital?
A.
Helpful in comparative analysis of various sources of finance
B.

Helpful in Capital structure decisions

C.

Helpful in Capital budgeting process

D.

All of the above

 
 

Option: D

Explanation :

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38:  
Which one of the following is not a sources of conflict in project ranking in capital budgeting decision as per NPV and IRR.
A.

Independent Investment project

B.

No capital Budget constraints

C.

No time disparity

D.

None of the above.

 
 

Option: D

Explanation :

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39:  

Given, K= (DPS / MP) X 100, may be used in

A.

calculating capital structure

B.

calculating cost of equity capital

C.
calculating dividend yield on equity share
D.

All of the above

 
 

Option: B

Explanation :

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40:  
Modigliani and Miller's dividend policy of a firm is
A.

Relevant

B.

Irrelevant

C.

Unrealistic

D.

None of these

 
 

Option: B

Explanation :

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