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The Return on Investment (RoI) of a comp...

The Return on Investment (RoI) of a company ranges between 10-12% for the past three years. To finacne its future fixed capital needs, it has the followings options for borrowing debt.
Option 'A': Rate of interest 9%
Option 'B': Rate of interest 13 %
Which source of debt : OPtion A or Option B is better ? Give reason in support of your answer. Also state the concept being used in taking the decision.

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ARIHANT PUBLICATION-Financial Management -CBSE Examination Archive ( Short Answer)
  1. The Return on Investment (RoI) of a company ranges between 10-12% for ...

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  2. Define capital structure.

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  3. Explain the concept and the objective of finanical management .

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  4. What is meant by 'financial planning? State any three points of its im...

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  5. Explain any four factors which affect the working capital requirement ...

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  6. What is meant by 'long -term investment decision.

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  7. Investement decision can be long-term or short - term Explain long -te...

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  8. What is menat by ' investment decision ? State any three factors which...

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  9. Explain any four factors which affect the 'fixed capital ' requirement...

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  10. What is meant by finacial management ? State the primary objective man...

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  11. what is menat by fiancial planning ? State any two points of importanc...

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  12. Finanical planning tries to link the present with the future. Explain ...

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  13. Explain the followinga s factors affecting financing decislon (a) Co...

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  14. Neelabh is enaged in transport business, and transports fruits and veg...

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  15. Pranav is engage in transport business. Identify the working capital r...

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  16. Determining the relative proportion of various types of funds depends ...

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  17. Determining the overall cost of capital and the financial risk of the ...

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  18. Name the dcison taken by a financial manager which determines the boer...

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  19. Finanical planning is a financial blue print of an organisation's futu...

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  20. Explain how the (a) cost of debt and (b) Cost of equity affect th...

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