Which of the following activities cannot be regarded as the primary objective of financial management?
Use the following information to answer the next question.
Working capital decisions affect the _____of a business. |
Which of the following alternatives correctly completes the given statement?
Financial risk refers to a risk that a/an _____
Which of the following statements is false with regard to the dividend decisions of a company?
Which of the following formulas is correct for calculating the capital structure of a company?
Use the following information to answer the next question.
Particulars |
Amount/Rate |
Total capital |
Rs. 70 lakh |
Equity |
Rs. 40 lakh (4 lakh @ Rs. 10 each) |
Debt |
Rs. 30 lakh |
Tax rate |
30% p.a. |
Interest rate |
10% p.a. |
Earnings before interest and tax (EBIT) |
Rs. 10 lakh |
Calculate the earnings per share (EPS) using the data above.
Which of the following features makes the use of debt less attractive?
In which of the following cases would the requirement of fixed capital be the highest?
Use the following information to answer the next question.
‘PR Ltd.’ decided to declare dividends for a financial year. However against the policies of the company the management decided to declare higher dividends to a few selected shareholders than to others. Moreover in order not to reveal the exact situation to these other shareholders it provided false information to them by disclosing a profit lower than the actual amount. |
Which of the following values is not missing in the given situation? (Value-Based Question)
Use the following information to answer the next question.
During financial planning the managers of ‘Sia Ltd.’ estimated that the company would require a huge amount of funds for future growth and expansion. As the company lacked appropriate sources of funds it decided to retain a large amount of the profit with itself rather than distribute dividends. But at the same time with the aim of motivating its employees it decided to share a part of the profits with them as bonus. |
Which of the following values is not promoted in the given situation?
Under which category will you put the following items:
a. Short-term investment
b. Debtors
‘Such decisions involve identifying various sources of funds and deciding the best combination for raising the funds for a business organisation.’ What kind of decisions is being implied here?