Which of the following is true for Net Income Approach?

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Question:
Which of the following is true for Net Income Approach?

1.Higher Equity is better

2.Higher Debt is better

3.Debt Ratio is irrelevant

4.None of the above

Posted Date:-2021-11-26 12:00:49

More MCQS Questions and answers

  1. A proposal is not a Capital Budgeting proposal if it:
  2. A sound Capital Budgeting technique is based on:
  3. At Indifference level of EBIT, different capital have
  4. Capital Budgeting deals with:
  5. Capital Budgeting Decisions are based on:
  6. Cost of Capital for Bonds and Debentures is calculated on:
  7. Difference between between the bank balance as per Cash Book and Pass Book may be due to:
  8. Dividend Payout Ratio is:
  9. Evaluation of Capital Budgeting Proposals is based on Cash Flows because:
  10. Feasibility Set Approach to Capital Rationing can be applied in:
  11. Financial decision involve;
  12. For a lesser, a lease is a
  13. Higher FL is related the use of:
  14. If a firm has ke > r the Walter's Model suggests for
  15. If no information is available, the General Rule for valuation of stock for balance sheet is
  16. If the Money Discount Rate is 19% and Inflation Rate is 12%, then the Real Discount Rate is:
  17. If the sales of the firm are. 60,00,000 and the average debtors are. 15,00,000 then the receivables turnover is
  18. In Current Ratio, Current Assets are compared with:
  19. In India, Commercial Papers are issued as per the guidelines issued by
  20. In MM-Model, irrelevance of capital structure is based on:
  21. In order to calculate Weighted Average Cost of weights may be based on:
  22. In order to find out cost of equity capital under CAPM, which of the following is not required:
  23. Inventory is generally valued as lower of
  24. MM Model of Dividend irrelevance uses arbitrage between
  25. NPV of a proposal, as calculated by RADR real CE Approach will be:
  26. Operating Leverage is calculated as:
  27. Process of Financial Planning ends with:
  28. Profitability Index, when applied to Divisible Projects, impliedly assumes that:
  29. Ratio of Net Income to Number of Equity Shares known as:
  30. Relationship between change in sales and change m is measured by:
  31. Risk in Capital budgeting implies that the decision-maker knows ________________ of the cash flows.
  32. Risk in Capital budgeting is same as:
  33. Risk-Return trade off implies
  34. Shares of face value of 10 are 80% paid up. The company declares a dividend of 50%. Amount of dividend per share is
  35. The basic objective of Tandon Committee recommendations is that the dependence of'industry on bank should gradually
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  37. The Traditional Approach to Value of the firm m that:
  38. The type of collateral (security) used for short-term loan is
  39. Under the provisions of AS-19 'Leases', a leased asset is shown is the balance sheet of
  40. Which element of the basic NPV equation is adjusted by the RADR?
  41. Which is not a service of a factor?
  42. Which of the following has the highest cost of capital?
  43. Which of the following is not a generally accepted approach for Calculation of Cost of Equity?
  44. Which of the following is not a type of dividend payment?
  45. Which of the following is not a usual type of lease arrangement?
  46. Which of the following is not applicable to commercial paper
  47. Which of the following is not followed in capital budgeting?
  48. Which of the following is not true of cash budget ?
  49. Which of the following is true for Net Income Approach?
  50. Which of the following statements is correct?
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