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 : Which of the following valuation methods would most likely not be used for business valuation? a) Discounted Cash Flow b) Net Assets Method c) Multi-period Excess Earning Method d) Industry Price Earnings Ratio
Last Answer : c) Rs.200 crore
Description : Relevant industry conditions include the following, except: a. The market and competition, including demand, capacity and price competition. b. Regulatory framework for a regulated industry. c. Cyclical or seasonal activity. d. Product technology relating to the entity's products
Last Answer : Regulatory framework for a regulated industry
Description : A situation in which more persons are employed in a job than are optimally required is: (a) Structural unemployment (b) Disguised unemployment (c) Cyclical unemployment (d) Seasonal unemployment
Last Answer : (b) Disguised unemployment
Description : PSA 315 requires that the auditor should obtain an understanding of relevant industry, regulatory and other external factors including the applicable financial reporting framework. Which of the ... Inflation and currency revaluation c. Market and competition d. Cyclical or seasonal activity
Last Answer : Inflation and currency revaluation
Description : Match List-I (Type of Unemployment) with List-II (Characteristics) and select the correct answer using the codes given below: L ist-I L ist -I I (Type of (Char acter ist ics) Unem ... contribution by the additional labour is nil E. Cyclical V. Job opportunities during certain months in the year
Last Answer : (1) A-V, B-III, C-IV, D-II, E-I
Description : In an agricultural family all the family members are working the farmland of the family. Due to addition of two more person in the family they are also working in the farmland of the ... (a) Cyclical unemployment ; (b) Disguised unemployment ; (c) Frictional unemployment (d) Seasonal unemployment
Last Answer : (b) Disguised unemployment ;
Description : Unemployment due to mismatch between skill possessed and present available jobs (a) Cyclical unemployment (b) Structural unemployment ; (c) Frictional unemployment; (d) Seasonal unemployment
Last Answer : (b) Structural unemployment ;
Description : Which of the following would most likely be useful for performing sensitivity analysis of business valuation? a) Standard of Value b) Understanding of Business c) Premise of Value d) Audit Opinion
Last Answer : b) Understanding of Business
Description : The forecasting method that is least dependent on historical data is A)regression analysis. B)trend analysis. C)time series analysis. D)cycle analysis. E)a market test.
Last Answer : E)a market test.
Description : Henry takes the company's sales for the past five years and calculates a growth trend. Which sales forecasting method is being employed? A)time series analysis B)executive judgement C)correlation methods D)market tests
Last Answer : A)time series analysis
Description : When a business has a relatively small number of customers, a useful method of forecasting is: A)time series analysis B)the delphi technique C)trend analysis D)a customer forecasting survey
Last Answer : D)a customer forecasting survey
Description : The forecasting method that is least dependent on historical data is: A)the correlation method B)trend analysis C)time series analysis D)a market test
Last Answer : D)a market test
Description : The fixed-rate payer in an interest-rate swap has a position equivalent to a series of ____________. a) long interest-rate puts and short interest-rate calls b) short interest-rate puts and long interest-rate calls c) long interest-rate puts and calls d) short interest-rate puts and calls
Last Answer : b) short interest-rate puts and long interest-rate calls
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 : 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
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 : 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 : 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 : A disadvantage of the Enterprise Value method for valuing equity is that it may be difficult to obtain the information about _______. a) operating income b) market value of debt c) market value of equity d) cash and cash equivalent
Last Answer : b) market value of debt
Description : Which of the following methods is included in ‘Asset based approach’ (cost-based approach)? a) Comparable Companies’ Multiple Method b) Replacement Method c) Earnings Capitalization Method d) Discounted Cash Flow Method
Last Answer : b) Replacement Method
Description : The results for accuracy studies in Analytical Method Validation, are expressed in terms of? A. % Relative error B. Correlation coefficient C. Relative standard deviation D. Mean
Last Answer : A. % Relative error
Description : The acceptance criteria for precision studies as per bioanalytical method validation is? A. % RE must be within + 10% B. % RE must be within + 15% C. % RE must be within + 20% D. % RE must be within + 5%
Last Answer : B. % RE must be within + 15%
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 analyst is valuing a firm's equity using the ‘Enterprise Value to Revenue Ratio’ of similar firms. Which of the following is not a factor that the analyst should use? a) Revenue growth b) EBITDA margins
Last Answer : d) Debt Equity ratio
Description : Which one of the following statements is correct concerning the weighted average cost of capital (WACC)? a) The WACC may decrease as a firm's debt-equity ratio increases. b) In the computation of ... of the WACC is based on the number of shares outstanding multiplied by the book value per share.
Last Answer : a) The WACC may decrease as a firm's debt-equity ratio increases.
Description : . If debt equity ratio is 3:1; the amount of total assets are Rs.20 lakh; current ratio is 1.5:1 and owned funds are Rs.3 lakh. What is the amount of current assets? a) Rs.5 lakh b) Rs.3 lakh c) Rs.12 lakh d) Rs.15 lakh
Last Answer : c) Rs.12 lakh
Description : Inductive learning involves finding a a) Consistent Hypothesis b) Inconsistent Hypothesis c) Regular Hypothesis d) Irregular Hypothesis e) Estimated Hypothesis
Last Answer : a) Consistent Hypothesis
Description : The sales forecasting method that consists of making a product available to buyers in one or more locations and measuring purchases is A)a market test. B)the regression analysis. C)trend analysis. D)a survey. E)the Delphi technique.
Last Answer : A)a market test.
Description : Which of the following are techniques, tools or methods of analysis and interpretation of financial statements? A. Ratio Analysis B. Average Analysis C. Trend Analysis D. All of the above
Last Answer : D. All of the above
Description : Powerful tool for analyzing financial statement is ---------- a) Trend analysis b) Ratio analysis c) Analysis d) Interpretation
Last Answer : b) Ratio analysis
Description : Comparison and interpretation of ratio is known as --------------------- a) Fund flow analysis b) Cash flow analysis c) Ratio analysis d) Trend analysis
Last Answer : c) Ratio analysis
Description : Ratios of different items for various periods are calculated and compared a) Common size b) Comparative c) Trend analysis d) Ratio analysis
Last Answer : d) Ratio analysis
Description : old, black macule on his back with irregular border and color variation : - Sq cell carcinoma - Basal cell carcinoma - Melanoma - Acanthic keratosis
Last Answer : Melanoma
Description : A small gap is left at the joints of rails in a railway track to – (1) avoid the tracks being distorted due to seasonal temperature variation (2) avoid the heating of tracks to high temperature (3) control the speed of train (4) keep the rails equidistant
Last Answer : (1) avoid the tracks being distorted due to seasonal temperature variation Explanation: A small gap is left at the joints of rails in a railway track to provide space for the expansion of rail pieces when the temperature rises during summer.
Description : A small gap is left at the joints of rails in a railway track to (1) avoid the tracks being distorted due to seasonal temperature variation (2) avoid the heating of tracks to high temperature (3) control the speed of train (4) keep the rails equidistant
Last Answer : avoid the tracks being distorted due to seasonal temperature variation
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 : The calibration of an HPLC detector can be evaluated by measurement of? A. Retention time B. Temperature C. Flow rate accuracy D. Intensity of the peak
Last Answer : D. Intensity of the peak
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 : 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 : 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