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21 . Which of the following is not a relevant cost in capital budgeting?
A. Sunk cost B. Allocated overheads
C. Both (a) and (b) D. Opportunity cost

22 . Which of the statement is true about dividend policy?
A. A stable and regular dividend keeps speculations away and prices of shares remain stable for longer period.
B. The dividend policy should be framed in accordance to the expectations of shareholders.
C.
Legal requirements play an important role in the formulation of dividend policy.
D. All of the above

23 . '360' degree method relates to
A. Retrenchments
B. Employees moral
C. Organization Climate
D. Performance appraisal

24 . Which one refers to cash in how under pay back period method?
A. Cash flow before depreciation and after taxes
B. Cash flow after depreciation but before taxes
C. Cash flow before depreciation and taxes
D. Cash flow after depreciation and taxes

25 . Arrange the following steps involved in capital budgeting in order of their occurrence (i) Project Selection (ii) Project appraisal (iii) Project generation (iv) Follow up (v) Project execution
A. (i), (ii), (iii), (v), (iv)
B. (i), (iii), (ii), (v), (iv)
C. (ii), (iii), (i), (v), (iv)
D. (iii), (ii), (i), (v), (iv)




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