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

A) Debt B) Loan
C) Equity D) Preference


21. Minimum rate of return expected by the equity share holders is called ____
A) Cost of the capital B) Marginal cost
C) Cost of preference D) Cost of equity

22. Net income Approach is provided by:
A) Miller B) David Durand
C) Gordan D) Walter

23. the act of buying & selling similar security simultaneously in various market to earn is known as
A) Arbitrager B) Gambling
C) Speculator D) Arbitrage

24. Growth firm is 1 where
A) R < K B) R = K
C) R > K D) R < K

25. Stock dividend is also called
A) Bonus shares B) Capital gains
C) Right shares D) None

26. The situation where the true capitalization of a company is much less than its
Capitalization is
A) Capitalization B) overcapitalization
C) Under D) All

27. The term_________ confirms itself to only long term sources of finance
A) Capital B) Capitalization
C) Share capital D) fund

28. Combined Leverage is equal to
A) DLO * DLF B) DOL * DFL
C) EBIT / EBIT – one D) None

29. ______ Risk arising from the problem of debt capital
A) Business Risk B) Financial Risk
C) Both A) and B) D) None

30. Traditional theory strikes a balance ranging from _____ and _____ approach.
A) MM, NI B) NI, NOI
C) NOI, MM D) None


31. Multiple compounding formulas is
a) A= P (1+i) m



b) A= P 1+___1__ n c) A=P m x n
100 1+__1__
m



d) A= P (1+i) 1mxn

Where A= amt. at the end of period ‘n’
Where P= Principle amt
Where n = No of years
Where m= No of times per year compounding

32. Which of the subsequent capital budgeting appraisal method does not consider Time value of money
a) Profitability index method
b) Internal rate of return method
c) Net current value method
d) Pay back period method

Earning:   Approval pending.