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MCQ's on Capital Budgeting Decisions Part-3 (in Hindi)
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Unacademy user
These 'Crisp and to the point' videos are very helping. Thanks Jatin for your hard work.
all arecorrect :) thank you
Kindly solve this 👇 Assertion (A) : A company should pay minimum dividend to its shareholders. Reason (R) : Dividends are heavily taxed than capital gains. Codes : (A) Both (A) and (R) are correct (B) Both (A) and (R) are incorrect (C) (A) is not correct but (R) is correct (D) (A) is correct but (R) is wrong
Ravi Enaganti
7 months ago
Both A and R are correct
Ravi Enaganti
7 months ago
Dividends are assets that are paid out of the profits of a corporation to the stockholders. They are considered income for the year, notcapital gains. The tax rates differ for capital gains based on whether the asset was held for the short term or long term before being sold.
Thanks a lot for your valuable teaching... :)
2 qs are wrong only
all r correct mam thank u so much
  1. Capital Budgeting Decisions By Heena Malhotra

  2. July 2018 Paper 2 By Heena Malhotra

  3. O 44. Which one of the following methods of Capital Budgeting assumes that cash-inflows are reinvested at the project's rate of return? o (1) Net Present Value o (2) Accounting Rate of Return o (3) Internal Rate of Return o (4) Discounted Pay Back Period By Heena Malhotra

  4. o 48. Profitability Index of a Project is the ratio of present value of cash inflows to: (1) Total cash inflows o (2) Total cash outflows o (3) Present value of cash outflows o (4) Initial cost minus Depreciation By Heena Malhotra

  5. November 2017 Paper 2 By Heena Malhotra

  6. o 35. Which one of the following equates the present value of cash out flows and the present value of expected cash inflows from a project? o (1) Net Present Value o (2) Internal Rate of Return O (3) Pay back Period o (4) Accounting Rate of Return By Heena Malhotra

  7. Jan 20117 Paper 2 By Heena Malhotra

  8. O 34. Which of the following is not true with reference to capital budgeting? o (1) Capital budgeting is related to asset replacement decisions. o(2) Cost of capital is equal to minimum required rate of return. o (3) Timing of cash flows is relevant. o (4) Existing investment in a project is not treated as sunk cost. By Heena Malhotra

  9. July 2016 Paper 2 By Heena Malhotra

  10. o31. Which of the following is not a feature of payback period method? o (1) It is simply a method of cost recovery and not of profitability. o (2) It does not consider the time value of money o (3) It does not consider the risk associated with the projects o (4) It is very difficult to calculate By Heena Malhotra

  11. o 26. From the following techniques of capital budgeting decision, indicate the correct combination of discounting techniques: o I. Profitability index o I. Net present value O IlI. Accounting rate of returin o IV. Internal rate of return oCodes o (2) I IV o (3) II INV o (4 IV By Heena Malhotra

  12. 31. In capital budgeting, the term capital rationing implies (1) (2) (3) (4) that no retained earnings are available. that limited funds are available for investment. that no external funds can be raised. that no fresh investment is required in current year By Heena Malhotra

  13. 31. Which of the following techniques for appraisal of investment proposals are based on time value of money? (a) Accounting Rate of Return (b) Internal Rate of Return (c) Profitability Index Method (d) Earnings Per Share Codes (1) (a) and (b) 2) (b) and (c) (3) (a) and (d) (4) (a), (b) and (d) By Heena Malhotra