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11 . Which of the following has the highest cost of capital?
A. Bonds B. Loans
C. Equity shares D. Preference shares

12 . The overall capitalisation rate and the cost of debt remain constant for all degrees of financial leverage is advocated by
A. M-M Approach
B. Traditional Approach
C. Net Income Approach
D. Net operating Income Approach

13 . The cost of debt capital is calculated on the basis of
A. Capital B. Net proceeds
C. Annual Interest D. Arumal Depreciation

14 . Two mutually exclusive projects with different economic lives can be compared on the basis of
A. Net Present Value
B. Profitability Index
C. Internal Rate of Return
D. Equivalent Annuity value

15 . The basic objective of financial Management is
A. Ensuring financial disciplined in the organisation
B. Maximization of shareholders wealth
C. Profit planning of the organisation
D. Maxirnization of profits




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