Sikkim-Manipal University of Health Medical and Technological Sciences (SMUHMTS) 2007 M.B.A Financial and Management Accounting - university paper

a) The weighted avg. of cost of different long term & short term sources of finance
b) The divided paid on the equity capital
c) The minimum rate of return it must earn on its investment to maintain its share price and thus keep its investors satisfied
d) The avg. rate of return it must earn to satisfy its investors

11. while calculating the weighted avg. cost of capital (WACC) , which of the subsequent weights are used
a) Market value rate b) both value rate
c) Both A& B d) None

12. Degree of financial leverage is a measure of relation ship ranging from .
a) EPS and annual interest payment b )EPS and EBIT
c) EPS and sales revenue d) EPS and output

13. The operating leverage shows
a) EPS change to EBIT b) EPS and EBIT
c) EPS and Sales revenue d) EPS and out put

14. Working capital gap is equal is
a) current assets (CA ) current liabilities (CL)
b) CA+CL excl,bank borrowings
c) CA+CL incl, bank borrowings
d) CA+CLincl, bank borrowings


15. operating cycle refers to the
a) Time credit for realization of credit sales
b) Time taken for conversion of raw material to finished good
c) Time taken for converting non –cash currents assets into cash
d) Production process of a firm

16. The strategy to sell part or segment of a company which is under performing to a 3rd party is called
a) Equity carve out b) Disinvestment
c) Diversification d) divestiture
24. Under ______ concept interest earned on the initial principle becomes a part of the principle at the end of the period
A) Net current Value B) Discounting Value
C) Compound Value D) None

17. A stream of equal annual cash flow is called
A) Installment B) Principle
C) Cash flow D) Annuity

18. Core Current Assets are referred in
A) Tandon Committee B) Chore Committee
C) Narasimhan Committee D) None

19. Marginal cost of capital is ____
A) Cost of additional funds B) Cost of existing funds
C) Cost of funds D) All

20. ______ is the cheapest source of finance

Earning:   Approval pending.