A. maximum capital budget
B. greater capital budget
C. optimal capital budget
D. minimum capital budget
Related Mcqs:
- In capital budgeting, two projects having cost of capital as 12% is classified as __________?
A. hurdle rate
B. capital rate
C. return rate
D. budgeting rate - In weighted average cost of capital, capital components are funds that usually offer by____________?
A. Stock market
B. Investors
C. Capitalist
D. Exchange index - During planning period, a marginal cost for raising a new debt is classified as__________?
A. Debt cost
B. Relevant cost
C. Borrowing cost
D. Embedded cost - The marginal income tax rate is 35% and before tax rate of return is 12.5% then the after tax rate of return is __________?
A. 0.0613
B. 0.0713
C. 0.08125
D. 0.0913 - The marginal income tax rate is 28% and before tax rate of return is 14.5% then the after tax rate of return is __________?
A. 0.0744
B. 0.0844
C. 0.0944
D. 0.1044 - The payback period in which an expected cash flows are discounted with the help of project cost of capital is classified as __________?
A. discounted payback period
B. discounted rate of return
C. discounted cash flows
D. discounted project cost - In weighted average capital, capital structure weights estimation does not rely on value of__________?
A. Investors equity
B. Market value of equity
C. Book value of equity
D. Stock equity - According to capital asset pricing model assumptions, investors will borrow unlimited amount of capital at any given___________?
A. Identical and fixed returns
B. Risk free rate of interest
C. Fixed rate of interest
D. Risk free expected return - The marginal income tax rate is 46.8% and before tax rate of return is 15.5% then the after tax rate of return is _____________?
A. 0.0725
B. 0.08246
C. 0.1025
D. 0.0925 - The modified rate of return and modified internal rate of return with exceed cost of capital if the net present value is ____________?
A. positive
B. negative
C. zero
D. one
