The conflict of interest between stockholders and management is known as:
(A) Agency problem
(B) Interest conflict
(C) Management conflict
(D) Agency cost
During the accounting period, sales revenue is Rs. 25,000 and accounts receivable increases by Rs. 8,000. What will be the amount of cash received from customers for the period?
(A) Rs. 33,000
(B) Rs. 25,000
(C) Rs. 17,000
(D) Rs. 8,000
Which of the following is a series of constant cash flows that occur at the end of each period for some fixed number of periods?
(A) Ordinary annuity
(B) Annuity due
(C) Perpetuity
(D) None of the given options
Which of the following is not a quality of IRR ?
(A) Most widely used
(B) Ideal to rank the mutually exclusive investments
(C) Easily communicated and understood
(D) Can be estimated even without knowing the discount rate
A model which makes an assumption about the future growth of dividends is known as:
(A) Dividend Price Model
(B) Dividend Growth Model
(C) Dividend Policy Model
(D) All of the given options
_________ refers to the most valuable alternative that is given up if a particular investment is undertaken?
(A) Sunk cost
(B) Opportunity cost
(C) Financing cost
(D) All of the given options
Which of the given area is NOT addressed by Business Finance?
(A) Financing
(B) Investing
(C) Managing day today expenses
(D) None of the given options
Between the two identical bonds having different maturity periods, the price of the ______ bond will change less than that of ______ bond.
(A) long-term; short-term
(B) short-term; long-term
(C) lower-coupon; higher-coupon
(D) None of the given options
In which of the following type of annuity, cash flows occur at the beginning of each period?
(A) Ordinary annuity
(B) Annuity due
(C) Perpetuity
(D) None of the given options
You need Rs. 10,000 to buy a new television. If you have Rs. 6,000 to invest at 5 percent compounded annually, how long will you have to wait to buy the television?
(A) 8.42 years
(B) 10.51 years
(C) 15.75 years
(D) 18.78 years