Explore topic-wise MCQs in Business Finance.

This section includes 3 Mcqs, each offering curated multiple-choice questions to sharpen your Business Finance knowledge and support exam preparation. Choose a topic below to get started.

1.

Cost of Equity Share Capital is more than cost of Debt because :

A. Equity shares are not easily saleable.
B. Equity shares do not provide the fixed dividend rate.
C. Generally the face value of equity shares is less than the face value of debentures.
D. Equity shares have high risk than debts.
Answer» E.
Discussion
2.

A company issues 10% irredeemable preference shares. The face value per share is Rs. 100, but the issue price is Rs. 95. What is the cost of preference share?

A. 10.63%
B. 10.73%
C. 10.83%
D. 10.53%
Answer» E.
Discussion
3.

Assertion A): According to Net Income (NI) approach, capital structure decision is relevant in the valuation of firm.Reason R): A firm can change its total value and its overall cost of capital by change in the degree of leverage in its capital structure.In the context of the above two statements, which one of the following options is correct?

A. Both A) and R) are correct and R) is the right explanation of A)
B. Both A) and R) are correct and R) is not the right explanation of A)
C. Both A) and R) are incorrect
D. is correct and R) is not correct
Answer» B. Both A) and R) are correct and R) is not the right explanation of A)
Discussion