Question No: 1 ( Marks: 1 ) - Please choose one

► 750,0Rs.3, 750,000
► Rs.48Rs.480, 000
► Rs.30Rs.300, 000
► Rs.1, Rs.1, 500,000
Question No: 2 ( Marks: 1 ) - Please choose one

► A firm that has a high degree of business risk is less likely to want to incur financial risk
► There exists little or no negotiation with suppliers of capital regarding the financing needs of the firm
► Financial ratios are relevant for making internal comparisons
► It is important to make external comparisons or financial ratios
Question No: 3 ( Marks: 1 ) - Please choose one

► Rs.840
► Rs.858
► Rs.1,032
► Rs.1,121
Question No: 4 ( Marks: 1 ) - Please choose one

► Rs.154.73
► Rs.147.36
► Rs.109.39
► Rs.104.72
Question No: 5 ( Marks: 1 ) - Please choose one

► Rs.253 million
► Rs.323 million
► Rs.380 million
► Rs.180 million
Question No: 6 ( Marks: 1 ) - Please choose one

► Choice of depreciation method for tax purposes
► Economic length of the project
► Projected sales (revenues) for the project
► Sunk costs of the project
Question No: 7 ( Marks: 1 ) - Please choose one

► A return equal to the return require by the investor
► A return more than required by investor
► A return less than required by investor
► A return equal to or more than required by investor
Question No: 8 ( Marks: 1 ) - Please choose one

► NPV and MIRR will create the conflict
► NPV and MIRR will lead to the same decision
► NPV will give the best solution
► MIRR will give the best solution
Question No: 9 ( Marks: 1 ) - Please choose one

► Higher; Lower
► Lower; Lower
► Lower; Higher
► Higher; Higher
Question No: 10 ( Marks: 1 ) - Please choose one

► Long-term debt
► Preferred stock
► Common stock
► None of the given option
Question No: 11 ( Marks: 1 ) - Please choose one

► 7.00
► 6.53
► 8.53
► 7.18
Question No: 12 ( Marks: 1 ) - Please choose one

► Higher
► Lower
► The same
► Rs. 1,000
Question No: 13 ( Marks: 1 ) - Please choose one

► Will be greater than the intrinsic value of stock B
► Will be the same as the intrinsic value of stock B
► Will be less than the intrinsic value of stock B
► None of the given options
Question No: 14 ( Marks: 1 ) - Please choose one

► 1.5%
► 2.0%
► 3.0%
► 4.0%
Question No: 15 ( Marks: 1 ) - Please choose one

► MIRR approach
► Going concern approach
► Common life approach
► Equivalent annual approach
Question No: 16 ( Marks: 1 ) - Please choose one

► Rs.680.58
► Rs.1,462.23
► Rs.322.69
► Rs.401.98
Question No: 17 ( Marks: 1 ) - Please choose one

► Rs.25,300
► Rs.34,122
► Rs.14,549
► Rs.11,989
Question No: 18 ( Marks: 1 ) - Please choose one

► Termination for Convenience
► Test for Completion
► Term finance certificate
► Transport Format Combination
Question No: 19 ( Marks: 1 ) - Please choose one

► Increase the stock price
► Improve goodwill
► Increase amount of debt
► Increase fixed assets
Question No: 20 ( Marks: 1 ) - Please choose one

► Financial statements
► Stock price in the market
► Credit worthiness of the company
► Capital structure of the company
Question No: 21 ( Marks: 1 ) - Please choose one

► Return on equity × (1- payout ratio)
► Return on equity / (1- payout ratio)
► Return on equity + (1+ payout ratio)
► Return on equity - (1/ payout ratio)
Question No: 22 ( Marks: 1 ) - Please choose one

► Project A: Io Rs.2, 000, Return in Yr 1= 850, NPV= 3, 500, IRR = 50%
► Project B: Io Rs.1, 500, Return in Yr 1= 1000, NPV= 450, IRR = 40%
► Project C: Io Rs.200, Return in Yr 1= 150, NPV= 73, IRR = 55%
► Project D: Io Rs.1, 000, Return in Yr 1= 750, NPV= 250, IRR = 55%
Question No: 23 ( Marks: 1 ) - Please choose one

► Po = DIV1 / rPE
► Po = DIV1 × rPE
► Po × rPE = DIV1
► Po - DIV1 = rPE
Question No: 24 ( Marks: 1 ) - Please choose one

► Standalone & portfolio risk
► Goodwill of the company
► Political instability
► Rate of return of similar shares
Question No: 25 ( Marks: 1 ) - Please choose one

► Overall risk of entire collection of investments
► Risk of particular investment as compare to other investment
► Risk of political instability within country
► Risk of bankruptcy of company making investment
Question No: 26 ( Marks: 1 ) - Please choose one

► Diversified
► Risky
► Costly
► Value based
Question No: 27 ( Marks: 1 ) - Please choose one

► Range / variance
► Expected return / standard deviation
► Variance / standard deviation
► Standard deviation / expected return
Question No: 28 ( Marks: 1 ) - Please choose one

► Risk of the overall portfolio is less than the risk of each of the stocks if they were held in isolation
► The risk of the portfolio is greater than the risk of one or two of the stocks
► The beta of the portfolio is lower than the lowest of the three betas
► The beta of the portfolio is higher than the highest of the three betas
Question No: 29 ( Marks: 3 )

“Common Stock is more risky than the Preferred Stock:”
Question No: 30 ( Marks: 3 )

Question No: 31 ( Marks: 5 )

What does the meaning of standard deviation in finance? (2.5)
Question No: 32 ( Marks: 5 )

Coupon Rate = 15% p.a, Security = Machinery
You are required to calculate the cash flow of the bank which you will pay every month as well as the present value of this optionfor more
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