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26. Given below are two statements, one labeled as Assertion (A) and the other labeled as Reason (R). Read the statements and choose the correct answer using the code given below. Assertion (A): As per M-M hypothesis the value of the levered firm is equal to the value of the unlevered firm. Reason (R): The process of arbitrage becomes applicable in such situations. Code:
Both (A) and (R) are correct and (R) is the right explanation of (A).
Both (A) and (R) are correct, but (R) is not the right explanation of (A).
(A) is correct, but (R) is incorrect.
Both (A) and (R) are incorrect.
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27. Choose the correct code for the following statements being correct or incorrect. Statement I: Companies generally do not prefer low-cost debt financing. Statement II: Raising debts requires credit rating and payment of interest even if companies suffer losses. Code:
Statement I is correct, but II is incorrect.
Statement II is correct, but I is incorrect.
Both the statements I and II are correct.
Both the statements I and II are incorrect.
28. Firms normally finance the working capital needs as per which combination of the following? (i) Trade credit (ii) Bank finance (iii) Commercial papers (iv) Factoring Choose the correct answer from the code given below: Code:
Only (i), (ii) and (iii)
Only (ii), (iii) and (iv)
Only (i), (ii) and (iv)
Only (i), (iii) and (iv)
29. The following two statements relate to marketing. Choose the correct code for the statements being correct or incorrect. Statement I: Marketing is about satisfying customer needs and wants. Statement II: Marketing can be performed only by individuals and not by organizations. Code:
30. Given below are two statements, one labeled as Assertion (A) and the other labeled as Reason (R). Read the statements and choose the correct answer using the code given below. Assertion (A): The marketing costs of reaching loyal consumers are much lower because the firm does not have to spend money on advertising and promotion campaigns to attract these customers. Reason (R): A high level of brand loyalty does not insulate the firm from the competition. Code:
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