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 : 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 : 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 : 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 : Category “B” station are those, where annual passenger earnings are (a) Rs. 6 to 10 crores (b) Rs. 3 to 6 crores* (c) Rs. 1 to 3 crores (d) Less than Rs. 1 crore
Last Answer : (b) Rs. 3 to 6 crores*
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 : 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 : 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 : An investment pays Rs.300 annually for five years, with the first payment occurring today. The present value of the investment discounted at a 4% annual rate is approximately __________. a) Rs.1336 b) Rs.1389 c) Rs.1625 d) Rs.1925
Last Answer : b) Rs.1389
Description : Jayant Sinha, minister of state for finance reported how many willful defaulters owing Rs 66,190 crore to state-owned banks as of December 2015? A) 6719 B) 7128 C) 5275 D) 7686 E) None of these
Last Answer : D) 7686 Explanation: Sinha also said that the total outstanding amount in top 100 non-performing accounts (NPAs) with public sector banks (PSBs) was Rs 1.73 lakh crore as of December 2015. Willful ... December 2015 while the amount involved more than doubled to Rs 66,190 crore from Rs 27,749 crore.
Description : What is the amount allocated for constructing the 18th railway zone of Andhra Pradesh? A. 205 crore B. 200 crore C. 195 crore D. 190 crore
Last Answer : A [205 crore] Explanation: New railway zone named as southern coast railway has been announced for Andhra Pradesh which would be headquartered in Thiruvananthapuram. It will be the 18th zone comprising Guntakal, Guntur and Vijayawada divisions and is to be built at the cost of 205 crores.
Description : The term _________ refers financial investment in highly risky and growth oriented venture with the objective of earning a high rate of retune.(a) Venture capital)Merchant banking c)leasing)
Last Answer : (a) Venture
Description : Which of the following leads to over-capitalization? A. acquiring fixed assets on excessive amounts. B. under-estimation of initial rate of earnings. C. using lower-rate of capitalization. D. under estimation of required funds.
Last Answer : A. acquiring fixed assets on excessive amounts.
Description : Rupesh invests Rs. 45,000 partly in Rs. 150 shares at Rs. 180 for 8% and partly in Rs. 75 shares at Rs. 135 for 12%. If the annual income from the inv
Last Answer : Rupesh invests Rs. 45,000 partly in Rs. 150 shares at Rs. 180 for 8% and partly in Rs. 75 ... investments made by Rupesh in the two types of sphares.
Description : Find the annual income derived from an investment of Rs. 18,000 in Rs. 150 shares available at Rs. 180 of a company paying 11% dividend.
Last Answer : Find the annual income derived from an investment of Rs. 18,000 in Rs. 150 shares available at Rs. 180 of a company paying 11% dividend.
Description : In July, the UK government s development finance unit, CDC announced to infuse Rs 1,000 crore into its Finance unit in India to boost people s access to affordable housing. This finance unit is A) ... Finance C) IDF Financial Services Pvt Ltd D) YVU Financial Services Pvt Ltd E) None of these
Last Answer : B) India Infoline Finance Explanation: Diversified financial services company IIFL Holdings announced that UK governmentowned CDC Group will invest about Rs 1,000 crore in its unit India Infoline ... needs of under-served segments through diversified offerings, IIFL Holdings said in a release.
Description : The life span of RBC of man is - (1) 120 days (2) 150 days (3) 180 days (4) 190 days
Last Answer : (2) 150 days Explanation: The average life span of RBC is about 100-120 days. The old, worn out and dead RBC are destroyed mainly in an organ called spleen.
Description : The life span of RBC of man is (1) 120 days (2) 150 days (3) 180 days (4) 190 days
Last Answer : 150 days
Description : The low water datum for a lake is defined as the surface of the lake when it is at elevation (A) 180.5 m above M.S.L. (B) 190.5 m above M.S.L. (C) 170.5 m above M.S.L. (D) 200.0 m above M.S.L.
Last Answer : (A) 180.5 m above M.S.L.
Description : Which of the following leads to under-capitalization? A. raising of more money by issue of shares. B. acquiring fixed assets on excessive amounts. C. over-estimation of earnings for enterprise. D. under-estimation of initial rate of earnings.
Last Answer : D. under-estimation of initial rate of earnings.
Description : Over - capitalization arises due to___________. A. excess of assets over the liabilities. B. excess of liabilities over the assets. C. actual earnings are lower than the expected earnings. D. actual earnings are higher than the expected earnings.
Last Answer : C. actual earnings are lower than the expected earnings.
Description : What is the value of Three-Year 4.25% Annual Coupon Bond Puttable at Par one year from now if one year forward rates at T (0), T (1) and T (2) are 2.50%, 3% and 4.5% respectively? a) 101.54 b) 101.71 c) 102.67 d) 102.89
Last Answer : c) 102.67
Description : The nominal thickness of one brick wall in mm, is (A) 90 mm (B) 150 mm (C) 190 mm (D) 200 mm
Last Answer : Answer: Option D
Description : A thief is noticed by a policeman from a distance of 200 m. The thief starts running and the policeman chases him. The thief and the policeman run at the rate of 10 km and 11 km per hour respectively. What is the distance between them after 6 minutes? A.100 m B.150 m C.190 m D.200 m E.None of these
Last Answer : Answer- A(100m) Explanation: Relative speed of the thief and policeman = (11 – 10) km/hr = 1 km/hr Distance covered in 6 minutes =[(1/60)*6] km = (1/10)km = 100 m. Distance between the thief and policeman = (200 – 100) m = 100 m.
Description : In case of valuation of firms for takeovers, which of the following provides a better estimate of value? a) Cash flows b) Free cash flows c) Future cash flows d) Free cash flow to equity
Last Answer : d) Free cash flow to equity
Description : _______are financial contracts that derive their value from an underlying assets. a. Future b. Forward c. Derivatives
Last Answer : c. Derivatives
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 : Super Profit is Rs.9,167 and the Normal Rate of Return is 10% Goodwill as per capitalization of Super Profit method is equal to A Rs.91,670 B Rs.90,600 C Rs.67,910 D Rs.95,000
Last Answer : ANS: Rs 91670
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 : 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 : Karan bought 1000 share of ABC Limited at Rs.910 through his broker excluding brokerage and taxes. However, the current market price of that share is Rs.915. Here, the amount of Rs.915 reflects ____________. a) value of share b) cost of investment c) investment value d) price of transaction
Last Answer : a) value of share
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 : On 1st April, 2013, Y Ltd. Issued 1000, 12% debentures of Rs. 100 each at a discount of 6%. These debentures are redeemable in five equal annual instalments at the end of each year. What is the amount of discount to be written off ... & L A/c ? (A) Rs. 2000 (B) Rs. 1800 (C) Rs. 1200 (D) Rs. 600
Last Answer : Answer: Rs. 1200
Description : A portion of Rs.6600 is invested at a 5% per annum, while the remainder is invested at a 3% per annum. If the annual income from the portion earning a 5% per annum is twice that of the other portion, what is the ... investments after one year? a) Rs.270 b) Rs.370 c) Rs.250 d) Rs.280 e) None of these
Last Answer : 5x + 3y = z (Total Income) x + y = 6600 -(1) 5x= 2(3y) 5x – 6y = 0 -(2) By solving (1) and (2) we get, x = 3600 so y = 3000 (3600*5*1)/100 + (3000*3*1)/100 = 180 + 90 = 270 Answer: a)
Description : For Category “A” stations, the annual passenger earning should be (a) Rs. 10 crores of more (b) Rs. 6 crores or more* (c) Rs. 3 crores or more (d) Less than Rs. 3 crores
Last Answer : b) Rs. 6 crores or more*
Description : Authorised capital of National Payments Corporation of India (NPCI) is _________ and paid up capital is _______ A. Rs 300 crore and Rs 100 crore B. Rs 350 crore and Rs 50 crore C. Rs 200 crore and Rs 100 crore D. Rs 100 crore and Rs 50 crore
Last Answer : A. Rs 300 crore and Rs 100 crore Explanation: National Payments Corporation of India (NPCI) was incorporated in December 2008 and the Certificate of Commencement of Business was issued in ... dimension and operate on high volume resulting payment services at fraction of the present cost structure.
Description : What is the initial minimum paid-up equity capital required for new on-tap license to set up private bank as announced by RBI? A) Rs 5 crore B) Rs 100 crore C) Rs 500 crore D) Rs 50 crore E) Rs 200 crore
Last Answer : C) Rs 500 crore Explanation: The Reserve Bank of India released norms for on-tap permits for private sector banks and said the validity of the in-principle approval issued by the RBI will be 18 months from the date of granting in-principle approval.
Description : NBFCs whose asset size is of _____ or more as per last audited balance sheet are considered as systemically important NBFCs. A. Rs.100 Crore B. Rs.200 Crore C. Rs.500 Crore D. All of the Above E. None of the Above
Last Answer : C. Rs.500 Crore Explanation: NBFCs whose asset size is of Rs.500 Crore or more as per last audited balance sheet are considered as systemically important NBFCs.
Description : Infrastructure Finance Company (IFC) is a non-banking finance company has a minimum Net Owned Funds of _______ A. Rs.100 Crore B. Rs.200 Crore C. Rs.500 Crore D. Rs.300 Crore E. None of the Above
Last Answer : D. Rs.300 Crore Explanation: Infrastructure Finance Company (IFC) is a non-banking finance company has a minimum Net Owned Funds of Rs.300 Crore.
Description : Companies having net worth in excess of Rs.______ crore are covered at the first phase. a. Rs.1000 Crores b. Rs. 500 Crores c. Rs. 200 Crores d. Rs. 100 Crores
Last Answer : a. Uniformity
Description : Which confectionary giant was slapped with a notice demanding 250 crore Rupees by the Directorate General of Central Excise Intelligence on the grounds of excise duty evasion? a) Cadbury India Ltd b) Wrigley India c) Lotte India d) Perk India Ltd
Last Answer : Answer: (a) Cadbury India Ltd
Description : Market price per share divided by earnings per share is------- a) Price earning ratio b) Return on equity c) Market test ratio d) Book value per share
Last Answer : a) Price earning ratio
Description : If GDP exceeds GNP the possible reasons could be (a) Foreigners are earning more in India than Indians are earning in foreign countries (b) High incidence of plant and machinery wear out (c) Indian are earning more in foreign countries than foreigners earnings in India (d) None
Last Answer : (a) Foreigners are earning more in India than Indians are earning in foreign countries
Description : XYZ Ltd. issued 10,000 shares of Rs. 100 each at Rs. 120 per share with Rs. 25 on application, Rs. 45 on allotment including premium, Rs. 20 on first call and Rs. 30 on final call. Govind who held 200 shares did not pay ... forfeiture ? (A) Rs. 14,000 (B) Rs. 10,000 (C) Rs. 9,000 (D) Rs. 4,000
Last Answer : Answer: Rs. 10,000
Description : Mr. X, the manager of XYZ Ltd. since 2002, was terminated by the Company on 1st Aug 2017 y paying a compensation of Rs.200 Lakhs. Such Compensation is: a) Chargeable under the Wealth tax Act 1957 b) Not Chargeable under Income Tax Act c) Chargeable u/s 17(3)(i) d) Chargeable u/s 28(ii)(a)
Last Answer : d) Chargeable u/s 28(ii)(a)
Description : A family of 8 , living in the rural area, with daily earning of RS 200 WILL BE CONSIDERED -Social Science
Last Answer : Below poverty line
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