Fin mgmt

2. .........form of market efficiency refers to a market where prices of traded assets (stocks) in the market reflect all historical publicly available information.
4. Revenue minus cost of goods sold is ...……….. profit.
8. ........ leases are fully amortized
10. Future………………….is the basis for Gordon’s Bird in the Hand argument.
11. ..........Costs are internal costs incurred due to competing interests of shareholders (principals) and management team (agents)
12. ……………………… is the minimum acceptable rate of return on a capital investment project.
15. Modigliani and Miller argue that the value of the firm depends upon its earning power, hence dividend decisions are…...…..
16. ………………………….. measures the money that investors are willing to pay for every rupee a company earns.
19. Enterprise value is equal to market value of debt plus market value of equity minus ….....
20. ………………….. risk is inherent on each investment.

1. ........stock split reduces the number of outstanding shares.
3. In……………….Bonds, issuer promises to pay fixed cash flow streams (steady stream of interests) forever.
5. …….…. theory states that companies should consider equity financing as the last resort.
6. In .....……… type lease manufacturer is the lessor.
7. The objective of financial management is to maximize …………………..wealth
9. The EBIT level at which the EPS is the same for two alternative financial plans is referred as………...…… point/level.
13. …………..... is the use of fixed costs in company's cost structure.
14. .......theory states that the dividends can be paid only out of the left over amount after financing all new projects with positive NPV.
17. A stock’s price will fall by the amount of dividend on …….…..... date
18. ………….... shares is the one of the ways to pay dividends to existing shareholders.