1.In order to calculate EPS, Profit after Tax and Preference Dividend is divided by: (a) MP of Equity Shares, (b) Number of Equity Shares, (c) Face Value of Equity Shares, (d) None of the above. 2.Trading on Equity is :(a) Always beneficial, (b) May be beneficial ,(c) Never beneficial,(d) None of the above. 3. Benefit of 'Trading on Equity' is available only if: ( a) Rate of Interest < Rate of Return, (b) Rate of Interest > Rate of Return,(c) Both (a) and (b),(d) None of (d) and (b). 4. Indifference Level of EBIT is one at which: (a) EPS is zero,(b) EPS is Minimum,(c) EPS is highest, (d) None of these. 5. Financial Break-even level of EBIT is one at which: (a) EPS is one, (b) EPS is zero, (c) EPS is Infinite,(d) EPS is Negative. 6. Relationship between change in Sales and d Operating Profit is known as: (a) Financial Leverage, (b) Operating Leverage ,(c) Net Profit Ratio,(d) Gross Profit Ratio. 7. If a firm has no Preference share capital, ...
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