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Match the items of List - I with those of List - II and indicate the correct code : List-IList-II (a)…

The Net Income Approach is a theory of Capital Structure Planning ((a)-(iii)), Profitability Index (PI) is a discounted cash flow technique for Capital Budgeting Decisions…

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Match the items of List - I with those of List - II and indicate the correct code :

List-IList-II
(a) Net Income Approach(i) Working Capital Management
(b) Profitability Index(ii) Over- capitalisation
(c) Concentration Banking(iii) Capital Structure Planning
(d) Lower Rate of Return(iv) Capital Budgeting Decision
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Answer and explanation

Correct answer A

The Net Income Approach is a theory of Capital Structure Planning ((a)-(iii)), Profitability Index (PI) is a discounted cash flow technique for Capital Budgeting Decisions ((b)-(iv)), Concentration Banking is a cash collection technique in Working Capital Management ((c)-(i)), and a persistently Lower Rate of Return than the industry norm is a symptom of Over-capitalisation ((d)-(ii)).

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