Savings in respect of a cost is treated in capital budgeting as:

Related MCQs

• Black & White Ltd. Has a cost of equity of 11% and a pre-tax cost of debt of 8.5%. The firm's target Weighted average cost of capital is 9% and its tax rate is 35%. What is the firm's target debt-equity ratio?
• Which of the following method of evaluation of capital budgeting proposals focuses on liquidity?
• Evaluation of Capital Budgeting Proposals is based on Cash flows because:
• Which of the following is not a risk factor in capital budgeting ?
• Which of the following capital budgeting methods has the value additive property?
• ………. on capital is called cost of capital.
• Use of more debt capital rather than equity capital is called……
• In weighted average cost of capital, rising in interest rate leads to-
• According to …. principle the ideal pattern of capital structure is one that tends to minimize the cost of financing.
• National Ltd. Has 12,000 equity shares of Rs.100 each. Sale price is equity share Rs.115 per share; flotation cost Rs.5 per share. Expected dividend growth rate is 5% and expected dividend at the end of the financial year is Rs.11 per share, What is the cost of equity shares of National Ltd?