December 2015 - Paper 2

31:   The term 'capital structure' implies:
A.

Share Capital + Reserves + Long-Term Debts

B.

Share Capital + Long and Short-Term Debts

C.

Share Capital + Long-Term Debts

D.

Equity and Preference Share Capital

 
 

Option: A

Explanation :

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32:  

A company has issued 10 percent perpetual debt of ₹ 1 lac at 5 percent premium. If tax rate is 30 percent, then the cost of debt will be :

A.

10 percent

B.

15 percent

C.

6.66 percent

D.

8.21 percent

 
 

Option: C

Explanation :

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33:  

"Dividend is not relevant in determining the value of the company". Who among the following held this opinion?

A.

J.E. Walter

B.

Ezra Soloman

C.

Modigliani-Miller

D.

M.J. Gordon

 
 

Option: C

Explanation :

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34:  

The formula Q/2 is used to compute the

A.

Total ordering cost

B.

Total carrying cost

C.

Opportunity cost

D.

Re-order point

 
 

Option: B

Explanation :

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35:   Financial Leverage is measured by ;
A.

EBIT/ EAT

B.

EBIT/ EBT

C.

EAIT/EBT

D.

C/EBIT

 
 

Option: B

Explanation :

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