Overview of Indian Financial System
1 (c) 2 (b) 3 (c) 4 (b) 5 (b) 6 (b) 7 (d) 8 (c) 9 (a) 10 (c) 11 (b)
Mutual Fund
1 (d) 2 (c) 3 (c) 4 (a) 5 (b) 6 (a) 7 (c) 8 (c) 9 (b) 10 (b) 11 (d) 12 (b) 13 (c) 14 (b) 15 (b) 16 (b)
Financial Markets
1 (d) 2 (d) 3 (d) 4 (c) 5 (d)
SEBI & Working of Stock Exchange in India
1 (c) 2 (b) 3 (a) 4 (b) 5 (c) 6 (b) 7 (d) 8 (b)
Source of Business Finance
1 (c) 2 (b) 3 (b)
Financial Management – Introduction
1 (c) Maximization of Shareholders’ Wealth, 2 (d) None of the above 3 (d) All of the above 4 (b) Risk and Return 5 (b) Variability of Future Outcome 6 (c) Financial Decision-making 7 (d) All of the above 8 (c) Financial Accounting 9 (c) Market Price of Equity Shares 10 (a) Dividend Payout Decision 11 (b) Creating Shareholders’ value 12 (d) Risk and Return 13 (a) Investment Decision 14 (a) Maximizing MP of Equity Shares 15 (d) Maneuvering the Shares Price 16 (d) Risk-Return Trade off 17 (a) Designing Optimal Capital Structure 18 (b) Reinvestment Requirement 19 (c) Financing Decision 20 (d) The market price per share of the company’s common stock.
Cost of Capital
1 (c) Required Rate of Return 2 (d) Retained Earnings. 3 (a) Equity Shares 4 (a) Risk-free Rate of Interest 5 (b) After-Tax basis, 6 (c) kO 7 (c) Cost of Debentures 8 (a) New Equity Shares 9 (b) Additional Funds 10 (b) Cost of Equity 11 (b) ke 12 (d) All of the above 13 (a) All sources,) 14 (c) Equity Shares holders would demand higher return 15 (c) Discount Rate that equates PV of inflows and outflows relating to capital 16 (c) Retained Earnings are cheaper than External Equity 17 (d) Minimum Rate of Return that the firm should earn 18 (b) Weighted Average Cost of Capital 19 (d) All of the three above 20 (b) Equity Share Capital plus Reserve and Surplus 21 (b) Equity Funds, Preference Capital and Long term Debt 22 (c) Tax-deductibility of Interest 23 (c) Market Price of Equity Share 24 (c) Debentures 25 (d) All of the above
Capital Structure
1 (c) Minimum WACC 2 (d) Both (a) and (b) 3 (c) Location of the plant 4 (c) Liquidity 5 (a) All financial resources 6 (b) Maximum 7 (c) Increase in Debt 8 (c) Operating Profit 9 (d) All of the above 10 (d) Political Stability 11 (b) Debt Capacity 12 (c) Debt-service Coverage 13 (d) Retained Earnings
Leverage Analysis
1 (a) Business Risk 2 (d) Financial Risk 3 (c) Multiplication 4 (a) High debt proportion 5 (a) Fixed Cost of Production 6 (c) Interest Cost 7 (a) Contribution + EBIT 8 (b) EBIT ÷ PBT 9 (c) High OL, Low FL 10 (c) Sales and EPS 11 (b) EBIT = Zero 12 (b) Operating leverage 13 (b) EBIT and EPS 14 (b) Increases FL 15 (b) Combined leverage 16 (c) Both (a) and (b) 17 ( ) 18 (d) None of the above 19 (b) FL is one 20 (d) FL will decrease 21 (c) If Sales rise by 1% EBIT will rise by 2.8% 22 (c) Fixed Cost 23 (b) Higher Debt
Derivatives
1 (c)