Answer the following MCQs - 21)What is the market value of common equity under the NOI approach? The firm has an expected net operating income of Rs 5000 with Rs 4000 of debt (market value). Assume that the overall capitalization rate is 20%? Select one: a. Rs 5000 b. Rs 20000 c. Rs 21000 d. Rs 25000

22)Consider the following data on a proposed investment: Investment required: Rs.160,000, Annual cash inflows: Rs.40,000, Life of the investment: 6 years, Salvage value: 0, Discount rate: 10%. Based on the above data, what is the payback period of the proposed investment project? Select one: a. 0.25 years b. 3 years c. 4 years d. 5 years

23)If the profitability index of a project is 0.75, it means: Select one: a. The NPV of the project is greater than zero b. The project's cost is less than the present value of its cash flows c. The NPV of the project is greater than 1 d. The project returns 75 rupees in present value for each Rs.100 invested in it.

24)80% of sales of Rs 10,00,000 of a firm are on credit. It has a Receivable Turnover of 8. Average Debtors of the firm would be____. Select one: a. Rs 1,60,000 b. Rs 2,00,000 c. Rs 4,00,000 d. Rs 1,00,000