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- Which of the following statement(s) is/are true?(Select the correct answer from the options below the statements) (1) Ordinary share capital represents the risk free capital of a business and forms an important part of a business' financial structure (2) Ordinary share capital represents the risk capital of a business and forms the cornerstone of a business financial structure (3) Ordinary share capital has a fixed rate dividend (2) only (1) only (3) only (1) and (3)
- Which of the following statements is false? Select the correct answer from the options listed below The bonus issue of a share is a means of raising long-term finance Share issues can be issued in several ways The placing of a share does not involve any invitation to the general public Long-term debt is an example of business long-term finance
- Question 11 Which of the following statements is true? Select the correct answer from the options below All positive NPV (net present value) investments enhance shareholders' wealth Money does not necessarily have a time value The cash flow forecast is needed to calculate ARR (accounting rate of return) IRR (Internal rate of return) is when NPV (net present value) is >0
- What does high debt to equity ratio indicate? (Select the correct answer from those listed below the following statements). (1) High risk in the business (2) High level of borrowing (3) High profitability levels (4) High company valuation (1) and (2) are correct (1) and (3) are correct (3) and (4) are correct None of the above are correct
- __ -are called common shares which represent the risk capital of a business and form the cornerstone of a business' financial structure. These give the owner the right to one vote-through the possession of each unit, at a company's shareholder's meeting. (Select the missing word below to complete the sentence) Ordinary shares Preference shares Premium shares Reserved shares