July 2016 - Paper3

26:  

From the following techniques of capital budgeting decision, indicate the correct combination of discounting techniques :
I. Profitability index
II. Net present value
III. Accounting rate of return
IV. Internal rate of return
Codes :

A.

I II III

B.

II III IV

C.

I II IV

D.

I III IV

 
 

Option: C

Explanation :

Click on Discuss to view users comments.

Write your comments here:



27:  

Insufficient working capital may result into which combination of the following ?
I. Failures to adapt to changes.
II. Enhancement in credit-worthiness of the firm.
III. Reduced availability of trade and cash discounts.
IV. Reduced volume of sales.
Codes :

A.

I, II, III, IV

B.

I, III, IV

C.

I, II, IV

D.

I, II, III

 
 

Option: B

Explanation :

Click on Discuss to view users comments.

Write your comments here:



28:   Which combination of the following represents the assumptions of the Walter’s dividend
model ?
I. The company has a very long or perpetual life.
II. All earnings are either reinvested internally or distributed as dividend.
III. There is no floatation cost for the company.
IV. Cost of capital of the company is constant.
A.

I II III

B.

II III IV

C.

I II IV

D.

I III IV

 
 

Option: B

Explanation :

Click on Discuss to view users comments.

Write your comments here:



29:  
Match the items of List – I with the items of List – II and indicate the correct code :
 
2016 july
A.

i ii iii

B.

ii iii i

C.

iii ii i

D.

ii i iii

 
 

Option: B

Explanation :

Click on Discuss to view users comments.

Write your comments here:



30:   A training technique in which trainees are first shown good management techniques in a
film, are asked to play roles in a simulated situation, and are then given feedback and
praise by their supervisor is known as.
A.

Behaviour modelling

B.

Role playing

C.

In-house development center

D.

Management game

 
 

Option: A

Explanation :

Click on Discuss to view users comments.

Write your comments here: