- Net Income Approach
- Traditional Approach
- Modigliani-Miller Approach
- Net operating Income
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Answer: Option 1
Net Income Approach advocates that the costs of equity capital and debt capital remain unaltered when the degree of leverage varies. Net Income Approach suggests that value of the firm can be increased by decreasing the overall cost of capital (WACC) through higher debt proportion.
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In an income statement, when costs become cost of sold goods and manufactured products are sold, such costs are?
Answer: Option 1 In an income statement, when costs become cost of sold goods and manufactured products are sold, such costs are inventoriable costs. Inventoriable costs are included in the...
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When a company uses increased fixed cost for production, this is an example of what type of leverage.?
Answer: Option 1 When a company uses increased fixed cost for production, this is an example of operating leverage. Operating leverage is a cost-accounting formula that measures the degree to...
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Directions : In each of the following questions a statement is given, followed by two conclusions. Give answer : Statements : The eligibility for admission to the course is minimum second class Master's degree. However, the candidates who have appeared for the final year examination of Master's degree can also apply. Conclusions : I. All candidates who have yet to get their Master's degree will be there in the list of selected candidates. II. All candidates having obtained second class Master's degree will be there in the list of selected candidates.?
Answer: Option 4 The statement mentions that the candidates who have obtained second class Master's degree or have appeared for the final year examination of Master's degree, can apply for...
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Direction : Two statements I and II are given. These statement may be either independent causes or may be effects of independent causes or a common cause. One of these statements may be the effect of the other statements. Read both the statements and decide which of the following answer choice correctly depicts the relationship between these two statements. Mark answer : I. The government has decided to give tax benefits for small savings for investments and benefit accruals. However, all withdrawals of such savings are to be taxed. II. People have been investing more in small savings than in equity market to avail maximum tax benefits.?
Answer: Option 3 Both the statements I and II are independent causes.
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Costs that are unavoidable and remain unchanged no matter what done are classified as?
Answer: Option 1 Costs that are unavoidable and remain unchanged no matter what done are classified as sunk costs. A sunk cost is a cost that an entity has incurred,...
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If A varies directly proportional to C and B also varies directly proportional to C, which one of the following is not correct ?
Answer: Option 2 $$\eqalign{ & {\text{A }}\alpha {\text{ C and B }}\alpha {\text{ C}} \cr & \Rightarrow {\text{A}} = {\text{kC and B}} = {\text{mC}} \cr & {\text{for some constants k and m}}{\text{.}} \cr &...
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Which of the following systems implementation approaches should be used if you want to run the old system and the new system at the same time for a specified period?
Answer: Option 3 Let'
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The annuity which refers to a debt payment for recovering the initial amount or capital in equal periodical payments, is known as;?
Answer: Option 4 Let'
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Fixed capital investment of a chemical plant is the total amount of money needed to supply the necessary plant and manufacturing facilities plus the working capital for operation of the facilities. Which of the following components of fixed capital investment requires minimum percentage of it?
Answer: Option 4 Let'
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