A company raises ₹1,00,000 by issuing 1000, 10% debentures of ₹100 each at a 2% discount, redeemable after 10 years. If the corporate tax rate is 40%, what is the cost of capital?

Match the items of List - I with those of List - II and indicate the correct code:

List – I	List - II
(A) ABC Analysis	(I) Dividend Decision
(B) Walter Model	(II) Capital Budgeting Decision
(C) Capital Rationing	(III) Capital Structure Decision
(D) Net Operating Income Approach	(IV) Working Capital Management Decision

Code:

Which one of the following equates the present value of cash out flows and the present value of expected cash inflows from a project?

Which one of the following is  not a method of calculating cost of equity capital?

Which of the following statements is false?

Main objective of employing Financial Leverage is to:

This activity strives to achieve the following two objectives: (A) To ensure availability of funds (B) To ensure that firm does not raise resources unnecessarily. Identify the activity from the following:

Making investment in a new machine to replace an existing one is :