Capital budgeting decisions are analyzed with help of weighted average and for this purpose____________?

Related Mcqs:

1. In weighted average cost of capital, capital components are funds that usually offer by____________?

   A. Stock market B. Investors C. Capitalist D. Exchange index...

2. 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...

3. In weighted average cost of capital, rising in interest rate leads to_________________?

   A. Increase in cost of debt B. Increase capital structure C. Decrease in cost of debt D. Decrease capital structure...

4. 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...

5. Weighted average cost of debt, preferred stock and common equity is classified as_____________?

   A. Cost of salvage B. Cost of interest C. Cost of taxation D. Cost of capital...

6. Weighted average of probabilities is classified as____________?

   A. Average rate of return B. Expected rate of return C. Past rate of return D. Weighted rate of return...

7. In capital budgeting, positive net present value results in_________________?

   A. Negative economic value added B. Positive economic value added C. Zero economic value added D. Percent economic value added...

8. In capital budgeting, term of bond which has great sensitivity to interest rates is______________?

   A. Long-term bonds B. Short-term bonds C. Internal term bonds D. External term bonds...

9. Profitability index in capital budgeting is used for_________?

   A. Negative projects B. Relative projects C. Evaluate projects D. Earned projects...

10. In capital budgeting, an internal rate of return of project is classified as its__________?

    A. External rate of return B. Internal rate of return C. Positive rate of return D. Negative rate of return...