Other things remaining the same, an increase in the tax rate on corporate profits will
Make debt relatively cheaper
Make debt relatively less cheap home
No impact on the cost of debt
None of these
Financial leverage is called favorable if
Return on Investment is lower than cost of debt
ROI is higher than cost of debt
Debt is nearly available
A decision to acquire a new and modern plant to upgrade an old one is a.
Financial Decision
Working capital Decision
Investment Decision
Primary aim or objective of finance management is
Profit maximization
Wealth maximization
Maintenance of liquidity
The cheapest source of finance is.
Debenture
Equity share capital
Preference share capital
Current assets of a business firm should be financed through
Current liability only
Long term liability only
Partly from both types i.e long and short term liabilities
Current Assets are those assets which got converted into cash
Within six months
Within one year
Between one and three year
Which of the following is not a fixed asset?
Land + Building
Plant + Machinery
Debtors + Bill receivable
Furniture + Fixtures
Higher debt equity ratio (Debt/Equity) results in
Lower financial risk
Higher degree of operating risk
Higher degree of financial risk
