1. If the nominal rate of interest is 10% per annum and is compounded monthly, the effective rate of interest will be:* 10% 10.10% 10.25% 10.38% 10.47%
2. If my retained earnings fall short of my capital requirement then I can do the following *
O I can take a small loan
O A long-term loan
O Issue few shares to raise money
O I will grow less and refrain from any external money
O A, B and C
3. If my current net earnings is more than sufficient to grow at my target rate then I can do the following (choose the best option according to you):*
A. keeping the un utilized amount as working capital
B. Give a handsome dividend
C. Buy more assets
D. pay-off loans A, B and C
E. A and B
