PGT (Commerce previous year questions) (HTET) (Part – II)

Total Questions: 100

91. In order to find out cost of equity capital under CАРМ, which of the following is not required?

Correct Answer: C. Market Price of Equity Share

92. Тах-гate is relevant and important for calculation of specific cost of capital of:

Correct Answer: C. Debentures

93. Advantage of Debt financing is:

Correct Answer: D. All of the above

94. Cost of issuing new shares to the public is known as:

Correct Answer: C. Flotation Cost

95. Cost of Equity Share Capital is more than cost of debt because:

Correct Answer: B. Equity shares have higher risk than debt

96. Which of the following is not a generally accepted approach for Calculation of Cost of Equity?

Correct Answer: C. Rate of Pref. Dividend plus Risk

97. Operating leverage helps in analysis of:

Correct Answer: A. Business Risk

98. Which of the following is studied with the help of financial leverage?

Correct Answer: D. Financing Risk

99. Combined Leverage is obtained from OL and FL by their:

Correct Answer: C. Multiplication

100. High degree of financial leverage means:

Correct Answer: A. High debt proportion