SCDL Assignment Financial Management - 74

This solved paper of Financial Management of SCDL Pune has been contributed by XYZ

 

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Multiple Choice Multiple Answer
Question	Shortcomings of Debentures from company's point of view
Answer	The debenture interest and capital repayment are obligatory payments , Debenture financing enhances the financial risk associated with the firm
Multiple Choice Multiple Answer
Question	Earnings / Price Approach to compute cost of equity shares is objected on the following grounds
Answer	It wrongly assumes that earnings per share will remain constant in future , All the earnings may not be distributed among the shareholders by way of dividend
Select The Blank
Question	The introduction of debt capital in the capital structure increases the earnings per share of ________
Answer	Equity shareholders
Select The Blank
Question	The mathematical expression of ________ is ( Minimum level + Maximum level ) / 2
Answer	Average level
Multiple Choice Single Answer
Question	Earnings per share is calculated as
Answer	( Profit after tax - Preference Dividend ) / No. of equity shares
True/False
Question	The requirement of Fixed Working Capital is unaffected due to the changes in the level of activity
Answer	TRUE
True/False
Question	Wealth maximization goal is only an extension of Profit maximization goal of the organisation
Answer	TRUE
Multiple Choice Multiple Answer
Question	Advantages of factoring
Answer	Factoring is the way in which the company can finance its requirement of Working capital in respect of receivables , The company can take advantage of the expertise of the factor in various fields , With the help of factoring the company can be relieved of administrative responsibilities
Multiple Choice Single Answer
Question	Gross Profit ratio is calculated as
Answer	[(Gross Profit / Net Sales)] * 100
Multiple Choice Multiple Answer
Question	The Proprietary concern is better than the Partnership concern on the following points
Answer	Minimum Government regulations , Where the business is small
Multiple Choice Single Answer
Question	Current assets are also referred to as
Answer	Working Capital
Multiple Choice Multiple Answer
Question	Advantages of ABC Analysis are
Answer	A close and strict control is facilitated on the most important items , Helps in maintaining a high inventory turnover ratio , Optimum utilisation of the available funds can be assured
Multiple Choice Multiple Answer
Question	The techniques of Analysis and Interpretation of financial statements are
Answer	Ratio Analysis , Cash flow Analysis
Multiple Choice Single Answer
Question	Accounting rate of return is calculated as
Answer	[Total Profits / (Net Investment * No. of years of Profits)] * 100

 

 

Note: Please tally the answers and verify them from SCDL textbooks as all answers might not be correct.