FM201 Urgent Answer Required
Aniqa Malik
What will be the taxable income of an Un-levered firm, if it has Earning Before Interest and Tax (EBIT) equal to Rs.50,000, and its tax rate is 35%?
► Rs.25,000
► Rs.45,000
► Rs.50,000
► Rs.60,000
According to the Miller Model, upper limit for cash balance is equal to which of the following?
► Lower limit + Spread
► Spread – Lower limit
► Optimal limit + Lower limit
► Lower limit – Spread
If market interest rate increases above the agreed rate in an interest rate option, the effective interest rate for the option holder would be:
► Less than the market rate
► Greater than market rate
► Equal to the market rate
► Zero
Suppose that a firm sells goods on terms of 2/15, net 20. On August 1, 2008 you buy goods from the company with an invoice value of Rs.30,000. You can avail the cash discount if you make the payment on or before:
► August 21, 2008
► August 15, 2008
► August 16, 2008
► August 20, 2008
In which of the following conditions a stock is said to be undervalued?
► If the stock has market value less than the expected value
► If the stock has market value more than the expected value
► If the stock has market value equal to the expect value
► If the stock has market value more that intrinsic value
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Aniqa Malik
MBA (3rd semester)