Related InterviewSolutions

• What is financial leverage? Explain with theh help of an example.
• What is considered the cheapest source of finance?
• What is the another name for long term investment decision?
• Give two factors affecting dividend decision.
• How do growth opportunities affect Dividend Decision?
• How is interest coverage ratio computed?
• Why is dividend decision called residual decision?
• " Tax benefits is available only in case of payment f interest and not on the payment of preference dividend. " Why?
• Jai Bharat Company Ltd. Is an autopart supplier company in Guru Gram, Haryana. Its business is spread over several cities. The CEO of company wants to open a factory in Gujarat near Tata motors Ltd. But due to recession for the last two years, its business is facing slow down. Company needs capital. Rakesh Gupta is CA and financial advisor of the company. He opines that during recession profit falls and investors prefer to invest in debentures to earn fixed income. Therefore, the company should issue debentures. In this paragraph, which factor affecting financing has been highlighted? Explain state of capital market.
• REI Agro Food Ltd. Is a famous multinational company. Mr. S.K. Nagi is its finance manager. He is making efforts to increase the market value of capital invested by the equity sharesholders. He already knew it could be possible only when price of the shares increases and price of shares increases only if financing, investment and dividend decisions are taken optimally. He did the same and achieved success. Which objective of financial management has been refered here? Explain.