Question No: 1
According to 2nd M&M proposition, cost of equity does NOT depend upon which of the following ?
a)The required return of firm s assets
b)The firm s cost of debt
c)The firm s stockholders
d)The firm s debt-equity ratio
Question No: 2
Mr. Sami has bought 50 shares of a corporation one year ago at Rs. 20 per share.Over the last year, you received a dividend of Rs. 2 per share. At the end of theyear, the stock sells for Rs. 25. If Mr. Sami sells the stock at the end of the year,what will be his total cash inflow ?
Rs. 100
Rs. 250
Rs. 1,000
Rs. 1,350
Question No: 3
While performing the feasibility analysis for a project, an operating cash flow of Rs. 250,000 has been calculated. Net working capital has increased by Rs. 50,000.There was no capital spending during the year. What will be the total cash flow for the project?
Rs. 170,000
Rs. 200,000
Rs. 215,000
Rs. 230,000
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