Question
An insurance company issues a one-year policy for
₹1,00,000 sum assured. Expected mortality rate = 0.001, expenses ₹50 per policy, risk-free discount rate = 5%. Compute Net Premium ignoring profit loading.Solution
Expected death benefit = ₹1,00,000 × 0.001 = ₹100 PV of benefit = ₹100 ÷ (1.05) ≈ ₹95.24 Add expenses = ₹50 Total premium ≈ ₹145
Which of the following ratios is very important to assess the eligibility of a borrower for a Term Loan?
Which of the following statement is true regarding standard costing?
A firm reports the following: Sales = ₹40,00,000; Cost of Goods Sold = ₹28,00,000; Inventory = ₹7,00,000. What is the Inventory Turnover Ratio?
A company’s current ratio is 1.5:1 and current liabilities are ₹4,00,000. What are its current assets?
Match the following:
A) Herzberg P) Need Theory
B) McClelland Q) Expectancy Theory
C) McGregor R) Motivation Hygiene Theory
...
If net income is ₹10 lakh and number of equity shares is 2 lakh, what is the EPS?
GH Ltd took a term loan of Rs.24 crore for a period of 20 years to be repaid in equal annual instalments. The interest is 10% p.a. on reducing balance. ...
Under which of the following head will repayment of loan be shown in a cash flow statement?
A company has the following details for the year:
• Net Income = ₹12,00,000
• Preferred Dividends = ₹1,00,000
• Outstandi...
Match the following Ratios
A) Overall profitability ratio 1) Gearing Ratio
B) �...
