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Business-Finance MCQs

Commerce Objective Questions



176. Assertion (A): Weighted average cost of capital should be used as a hurdle rate for accepting or rejecting a capital budgeting proposal.
Reason (R): It is because by financing in the proportions specified and accepting the project, yielding more than the weighted average required return, the firm is able to increase the market price of its stock.
Discussion

177. Corporations today are operating in an environment in which exchange rate changes may adversely affect their competitive positions in the marketplace. This situation, in turn, makes it necessary for many firms to
Discussion

178. Which formula is used to measure the degree of operating leverage?
Discussion

179. MM theory in perfect market suggests that dividend payment
Discussion

180. The portion of eamings which is distributed among shareholders in the form of dividend is called
Discussion

181. In 2015, the RBI issued regulations known as the Rupee Bond Guidelines allowing Indian issuers to raise funding through the issuance of rupee-denominated debt instruments. These instruments are now widely referred to as
Discussion

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