Financial Accounting - Financial Accounting MCQ

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31:  

The cost of capital declines when the degree of financial leverage increases 'who advocated it'.

A.	Net operating income approach
B.	Net income approach
C.	Modigliani - Miller approach
D.	Traditional Approach
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	Option: B Explanation : Click on Discuss to view users comments. Write your comments here: Updating your Comments.. Updating your Comments..

32:  

The formula , ((1 - t_i) EPS / MP )  X 100 , may be used for

A.	cost of equity capital
B.	cost of retained earnings
C.	cost of preference share capital
D.	cost of debt capital
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	Option: B Explanation : Click on Discuss to view users comments. Write your comments here: Updating your Comments.. Updating your Comments..

33:  

Cost of depreciation fund computed as

A.	Long term loan capital
B.	Dividend
C.	Short term loan capital
D.	Profit
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	Option: A Explanation : Click on Discuss to view users comments. Write your comments here: Updating your Comments.. Updating your Comments..

34:  

Dividend policy of a company mainly concern with

(i) dividend payout and

(ii) Stability of dividend

A.	Only (i) is correct
B.	Only (ii) is correct
C.	Both (i) and (ii) are correct.
D.	Both (i) and (ii) are incorrect.
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	Option: C Explanation : Click on Discuss to view users comments. Write your comments here: Updating your Comments.. Updating your Comments..

35:  

Discounted cash flow criteria for investment appraisal does not include

A.	Not present value
B.	Benefit cost ratio
C.	Accounting rate of return
D.	Internal rate of return
	Answer Report Discuss
	Option: B Explanation : Click on Discuss to view users comments. Write your comments here: Updating your Comments.. Updating your Comments..

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