Accretive

Dilutive

Neutral

None of these

Q41) What is a valid statement

The discount rate is equal to the capitalization rate.

The discount rate is the reciprocal of the capitalization rate.

The discount rate is equal to the capitalization rate minus the rate of growth in perpetuity.

The discount rate is equal to the capitalization rate plus the rate of growth in perpetuity.

Q42) Financial modeling is a quantitative analysis which is used to make a decision

or a forecast about a project generally in ________________.

asset pricing model

corporate finance

Either of these

Both of these

Q43) What is the purpose of performing financial modeling in investment banking

and financial research?

For Forecasting companies financial statement

For Company Valuation

For Financial Analysis

All of these

Q44) What can be inferred if, a company has a market to book value ratio same to the
industry average and an lower ROE against the industry average

the company has a higher P/E ratio than other firms in the industry

the company is more likely to avoid insolvency in the short run than other firms in the
industry