Description : An ________relieves the company of the risk and uncertainty of marketing the securities. a. Underwriter b. Shareholder c. Banker
Last Answer : a. Underwriter
Description : The primary role of the ________ is to purchase securities from the issuer and resell them to investor. a. Underwriter b. Shareholder c. Banker
Description : Which of the following statements is true? a) Debenture holder is an owner of the company. b) Debenture holder can get back its money only on the liquidation of the company. c) A debenture issued ... can be redeemed at a premium. d) A debenture holder receives interest only in the event of profits
Last Answer : c) A debenture issued at a discount can be redeemed at a premium.
Description : _______ look for opportunities to take on risk in the hope of making return a. Shareholder b. Hedgers c. Speculators
Last Answer : c. Speculators
Description : Which one of the following is covered in the valuation report? a) Proposed Transaction b) Related Parties c) Share Holding Pattern d) Valuation Methodologies
Last Answer : d) Valuation Methodologies
Description : An asset is officially appraised and priced on _____. a) verification date b) valuation date c) report date d) effective date
Last Answer : b) valuation date
Description : Which of the following situations would invoke "question of law"? a) Disputing parties do not agree to the valuation arrived by the valuer. b) Disputing parties do not agree to choice of the ... from the well accepted principles of valuations. d) Valuer did not submit its report within the time.
Last Answer : c) Valuer has departed from the well accepted principles of valuations.
Description : Typical parameters used in quantitative methods to estimate discount for lack of marketability include ____________. a) duration of the restriction and risk of the investment b) return of the investment c) dividends paid
Last Answer : a) duration of the restriction and risk of the investment
Description : Salary under section 17(1) of the Income Tax Act, 1961 does not include _____. a) wages b) pension c) interest d) gratuity
Last Answer : interest
Description : The stability protocol of a tablet formulation must include? A. Vendor list for raw materials B. Batch No. C. Pharmacological category of the active substance D. Layout of the manufacturing area
Last Answer : B. Batch No.
Description : The collar of a floating-rate bond refers to the minimum and maximum ______. a) call periods b) maturity dates c) coupon rates d) yields to maturity
Last Answer : c) coupon rates
Description : A company can forfeit shares if the– (A) shareholder fails to pay the amount of the call during the stipulated time (B) shareholder pays calls in advance (C) shareholder does not pay the application money (D) shares have been issued at par
Last Answer : Answer: shareholder fails to pay the amount of the call during the stipulated time
Description : Under the SEBI (Share Based Employee Benefits) Regulations, 2014, appreciation means the difference between the ______________. a) market price of the share of a company on the date of exercise of stock ... a company on the date of exercise of share appreciation right (SAR) and the SAR price.
Last Answer : market price of the share of a company on the date of exercise of stock appreciation right (SAR) or vesting of SAR, as the case may be, and the SAR price.
Description : A Tribunal makes an order under section 230 of the Companies Act, 2013 sanctioning a compromise or an arrangement in respect of a company. In this context, strike the odd one out: a) It will ... . c) It can modify the order or compromise. d) It can ask for creditors' responsibility statement.
Last Answer : d) It can ask for creditors’ responsibility statement.
Description : XYZ company has 50 lakh shares outstanding and plans to raise Rs.20 lakh by offering 10 lakh shares at Rs.2 per share. What is XYZ's post-money valuation? a) Rs.1.20 crore b) Rs.1 crore c) Rs.50 lakh d) Rs.2 crore
Last Answer : a) Rs.1.20 crore
Description : During a merger and acquisition transaction, the ability to find and use good comparable data for a valuation is relatively ____________. a) easy because each successful company within an industry ... depth, product diversity and access to lines of credit seldom match the company being valued
Last Answer : d) difficult because size differential, management depth, product diversity and access to lines of credit seldom match the company being valued
Description : Relief-from-royalty method estimates the value an asset based on the value of the royalty payments __________. a) from which the company is relieved due to its ownership of the asset b) made by the ... by the company from the useful life of the asset d) over and above the internal rate of return
Last Answer : a) from which the company is relieved due to its ownership of the asset
Description : The credit default spread method of valuation of a guarantee given by a parent company on behalf of its subsidiary involves estimating the value ____________. a) using credit default spread based on ... guarantor c) based on probability of default d) of the guarantee using an option pricing model
Last Answer : a) using credit default spread based on the credit rating of the subsidiary
Description : Which of the following describes the main purpose of corporate governance? a) Establish short-term strategic objectives for a company. b) Ensure collective strategic decisions for a company. c) ... and prudent management of a company. d) Establish and monitor the operating parameters for a company
Last Answer : c) Facilitate effective, entrepreneurial and prudent management of a company.
Description : valuer should not use or divulge to other clients or any other party any confidential information about the ______ company. a) subject b) client c) public d) listed
Last Answer : a) subject
Description : ______ is used to estimate the worthiness of the credit for company, country or any individual company. .(a) credit evaluation b) Credit rating c) both )
Last Answer : b) Credit rating
Description : Underwriters build up ______ confidence in the issue of securities. a. Borrowers b. Investors c. Company
Last Answer : b. Investors
Description : “Prospectus” is the most important document for the Company to come out with a ______issue. a. Private b. Public c. Company
Last Answer : b. Public
Description : The central theme of forfaiting is the purchasing of ________by a financial service company. d. Trade bill e. Export bill f. Import bill
Last Answer : e. Export bill
Description : NBFC is a company registered under _________. a. The Indian Contract Act b. The Companies Act, 1956 c. The RBI Act
Last Answer : c. The RBI Act
Description : The system administrator in CRC a) He will be responsible for the maintenance and security in the functioning of the system by keeping secrecy of his own password and also ensuring proper maintenance ... and periodical Back-up/Restore of data and cleaning up of records. d) All the above
Last Answer : d) All the above
Description : The free cash flow to the firm (FCFF) is closest to ___________. a) Rs.130 lakh b) Rs.112 lakh c) Rs.118 lakh d) Rs.124 lakh
Last Answer : c) Rs.118 lakh
Description : The terminal value in year 6 is closest to __________. a) Rs.22.57 b) Rs.20.42 c) Rs.24.30 d) Rs.25.70
Last Answer : a) Rs.22.57
Description : The per share value Dev should assign to RC Ltd. is closest to ___________. a) Rs.15.35 b) Rs.20.86 c) Rs.17.35 d) Rs.18.46
Last Answer : c) Rs.17.35
Description : The required rate of return is closest to ____________. a) 10.012% b) 7.062% c) 0.062% c) 11.065%
Last Answer : c) 0.062%
Description : There are two income-based approaches that are primarily used when valuing a business, the Capitalization of Cash Flow Method and the ___________. a) Net Present Value Method b) IRR Method c) Discounted Cash Flow Method d) Discounted Payback Period
Last Answer : c) Discounted Cash Flow Method
Description : Which of the following is the capitalization rate of the BC Ltd.? a) 5.0% b) 3 % c) 4% d) 4.5%
Last Answer : c) 4%
Description : What is the annual future earnings of the AZ Ltd. using ‘Capitalization of Earning Method’? a) Rs.150 crore b) Rs.180 crore c) Rs.200 crore d) Rs.190 crore
Last Answer : c) Rs.200 crore
Description : The exemption under section 54 of the Income Tax Act, 1961 is available ___________. e) to the extent of capital gain invested in the house property f) proportionate to the net consideration price invested g) to the extent of amount actually invested h) to the extent of net consideration
Last Answer : to the extent of capital gain invested in the house property
Description : Under the SARFAESI Act, 2002, the Central Registrar may allow the filing of the particulars of creation of security interest within _____ next following the expiry of the period of initial thirty days on payment of additional fee. a) Ten days b) Thirty days c) Twenty-five days d) Fifteen days
Last Answer : b) Thirty days
Description : According to RBI Guidelines on Sale of Stressed Assets by Banks, identification of stressed assets beyond a specified value, as may be determined by bank’s policy, for sale is ___________. a) Top-down b) Bottom–top c) Horizontal d) Vertical
Last Answer : a) Top-down
Description : STRIPS stands for ______________. a) Separate Trading of Registered Interest and Principal Shares b) Segregated Trading of Registered Interest and Principal Securities c) Separate Trading of ... Interest and Principal Securities d) Segregated Trading of Registered Interest and Principal Shares
Last Answer : c) Separate Trading of Registered Interest and Principal Securitie
Description : Which statute governs external commercial borrowing? e) Foreign Exchange Maximization Act, 1972 f) Foreign Exchange Management Act, 1999 g) Foreign Exchange Minimization Act, 2004 h) Foreign Exchange Regulation Act, 1972
Last Answer : f) Foreign Exchange Management Act, 1999
Description : Which of the following is the act of taking a risk for a fee? e) Guidewire f) Initial Public Offering g) Predictive analytics h) Underwriting
Last Answer : h) Underwriting
Description : Measurement and disclosure do not apply to which of the following? a) Leasing based transactions b) Net realizable values/Impairment of Assets c) Share based payments d) Price received to sell or buy an asset
Last Answer : d) Price received to sell or buy an asset
Description : The decline in the combined ratio is most likely to indicate that the insurer has ___________. a) increased its administration expenses b) increased its long term borrowing c) improved its investment returns d) improved its underwriting results
Last Answer : d) improved its underwriting results
Description : An investment entity evaluates the performance of its investments on __________value basis. a) fair b) book c) market d) use
Last Answer : a) fair
Description : What adjustment is made while using the Discounted Cash Flow method to value cyclical companies? a) Normalize earnings b) Use high discount rate c) Use bank rate for discounting d) Use high growth rate
Last Answer : a) Normalize earnings
Description : One is entitled to initiate insolvency resolution of a corporate debtor when the corporate debtor __________. a) does not have enough liquid cash to continue operations as a going concern b) has failed to ... debt when due and payable c) has ceased to be a going concern d) has negative net worth
Last Answer : b) has failed to repay a debt when due and payable
Description : Which of the following method would you consider appropriate while valuing the intangible assets? a) Multiple b) Relative c) Consistent d) Exclusive
Last Answer : b) Relative
Description : If the aggregate fair market value of prescribed movable property received by a taxpayer as gift during the year is Rs.1,50,000, tax will be charged on ______. a) Rs.1,00,000 b) Rs.50,000 c) Rs.1,50,000 d) Rs.0
Last Answer : c) Rs.1,50,000
Description : What is an intangible asset? a) Non-monetary asset with physical substance b) Monetary asset without physical substance c) Non-monetary asset without physical substance d) Monetary asset with physical substance
Last Answer : c) Non-monetary asset without physical substance
Description : Individuals hold their claims on real assets through ____________ in a well-developed economy. a) intangible assets b) tangible assets c) real estate d) financial assets
Last Answer : d) financial assets
Description : The first step in the Monte Carlo simulation process is to _____. a) generate random numbers b) set up cumulative probability distributions c) establish random number intervals d) set up probability distributions
Last Answer : d) set up probability distributions
Description : Which of the following is an assumption on the returns distribution in Black Scholes Model? a) Normal b) Exponential c) Standard d) Linear
Last Answer : a) Normal