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This set of Strategic Financial Management Multiple Choice Questions & Answers (MCQs) focuses on Strategic Financial Management Set 6

Q1 | The ideal situation is to have high financial leverage and low operating leverage.
Q2 | Composite leverage explains change in taxable income on account of change in sales
Q3 | Dividend on preference share capital is ignored while calculating operating leverage.
Q4 | Trading on equity implies having a ------ debt-equity ratio.
Q5 | ………. on capital is called cost of capital.
Q6 | Which among the following method is based on time value of money?
Q7 | Under net present value criteria, a project is approved if ……
Q8 | The return available from the project after the pay-back period is not considered in the case of ……
Q9 | Internal rate of return and net present value are synonymous terms.
Q10 | Ind AS deals with Lease finance is ____
Q11 | ……..is a long term lease and the lessee will be paying much more than the cost of the property orequipment to the lessor in the form of lease charges.
Q12 | ………is also known as dividend capitalisation model
Q13 | SVA stands for….
Q14 | Financial risk arises when there is an involvement of ……in the capital structure
Q15 | The concept of EVA has been developed by …….
Q16 | Use of more debt capital rather than equity capital is called……
Q17 | The policy on quantum of dividend to be distributed as dividend is termed as ……
Q18 | Operating leverage is not favourable when ………
Q19 | Stock dividend and bonus shares are synonymous terms.