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16 . Which statement is true about financial management?
A. The maximisation of profit is often considered as an implied objective of a firm
B. The wealth of a firm is defined as the market price of the firm's stock
C. An option is a claim without any liability
D. All of the above

17 . Which of the following is not included in the assumption on which Myron Gorden proposed a model on Stock valuation
A. Taxes do not exist
B. Finite Life of the firm
C. Constant rate of return on firms investment
D. Retained earning the only source of financing

18 . Which is called as Dividend Ratio Method?
A. Asset Method
B. Equity Method
C. Debt Equity Method
D. Dividend Yield Method

19 . If the current ratio is 2 : 1 and working capital is Rs. 60,000, What is the value of the current assets?
A. Rs. 1,00,000 B. Rs. 1,20,000
C. Rs. 1,40,000 D. Rs. 1,60,000

20 . Profitability Index, when applied to divisible projects, impliedly assumes that
A. NPV is addictive in nature
B. NPV is linearly proportionate to part of the project taken up
C. Both (a) and (b)
D. Project cannot be taken in parts




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