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Question 4. a) Investment decisions and finance decisions are interrelated, comment.  ANSWER:  Click here to DOWNLOAD answer: For Other subjects click Here

Question 3.b) Explain the internal and external factors that influence in the company’s capital structure.  ANSWER: Click here to DOWNLOAD answer: For Other subjects click Here

Question 3. a) What do you understand by stable dividend policy? Why should the firms follow it?     ANSWER: Click here to DOWNLOAD answer: For Other subjects click Here

Question 2.b) The information relating to X & Co. is given below:- EBIT = Rs 11,20,000 PBT = Rs 3,20,000 Fixed Cost = Rs 7, 00,000 Calculate the change in EPS if sales are expected to increase by 5%. ANSWER: Click here to DOWNLOAD answer: For Other subjects click Here

Question 2. a) What is financial leverage ? Examine the impact of financial leverage on the EPS. Does the financial leverage always increase EPS? Explain.  ANSWER:  Click here to DOWNLOAD answer: For Other subjects click Here

Question 1. b) Calculate the cost of equity for a firm whose share price in Rs.120. The dividend at the end of year is expected to be Rs 9.72/Share and growth rate is 8%.  ANSWER: Click here to DOWNLOAD answer: For Other subjects click Here

Question 1. a) What is weighted average cost of capital? Examine the rationale for using weighted average cost of capital?  ANSWER: Click here to DOWNLOAD answer: DON’T FORGET TO THANK SATAKSHI JAISWAL IN THE COMMENTS: For Other subjects click Here