Practice Alternate Sources of Finance Questions and Answers

• Which of the following is not true about the market value of a bond?
• Loan in the repo market involves a very little credit risk because ________
• Why Treasury rates are significantly lower as compared to other rates?
• Which of the following decisions do not affect the Free Cash Flow to equity?
• Options’ sensitivity to decrease in time to expiration is called:
• Reinvestment risk would not occur if:
• The current expected risk-free rate is 4%, the equity premium is 3.9% and the beta is 0.8. calculate the return on equity.
• Byron Ltd reported 32000 in earnings during the current financial year. The total shares outstanding are 40000 at a market price of 18 per share. What is B...
• Depreciation would be classified as:
•  Which of the following methods of redeeming the bonds before maturity is generally considered the most detrimental for bondholders?
• The process in which certain types of assets are pooled so that they can be repackaged into interest-bearing securities is called:
• `Which of the following financial reports are considered to be of lowest quality? Financial reports that reflect:
• The ratio of a firm’s property, plant, and equipment, net of accumulated depreciation, to its annual depreciation expense is an estimate of:
• Which of the following is not likely to be a motivation to overreport earnings?
• At the end of last year, Max Ltd’s assets and liabilities are: Total assets = 85500 Accrued liabilities = 6500 Bonds payable = 37500 Max Ltd’s debt...
• The bonds which are issued outside the jurisdiction of one country and denominated in a currency different from the currency of the countries in which they...
• ABC Ltd has its Earning before Interest and Tax as 45000. The tax rate applicable for the year is 25%. It has made a capital expenditure of Rs 22500 and a ...
• The adjustments required in cash flow from operations to find free cash flow to the firm are:
• Individuals can now directly purchase treasury bills, dated securities, sovereign gold bonds (SGB) and state development loans (SDLs) under RBI’s _______...
• Corona Kavach is a health insurance policy designed to cover the hospitalisation and medical expenses arising out of COVID-19 treatment. The premium paid o...
• Cryptocurrency is regulated by _________
• Till December 2021, Indian banks had raised more than Rs 37,000 crore by issuing new AT1 bonds in financial year FY22. AT1 Bonds are also commonly known ...
• A Public company should hold at least ______ meetings in a year.
• A monthly self-declaration to be filed for furnishing summarized details of all outward supplies made, input tax credit claimed, tax liability ascertained ...
• The inter-regulatory body to strengthen the mechanism for maintaining financial stability and promoting financial sector development is _________
• A company came out with IPO at a price of Rs.55 each for 50,000 shares with face value of Rs.10 each. It listed on the stock exchange at Rs.60. What amount...
• The main objective of cost accounting is ________
• Ms. Sonya received 500 ESOPs at Rs.20 each. The market value of the share at that time was Rs. 40, and Rs.50 at vesting time and Rs.75 at exercise time. Wh...
• As per Companies Act 2013, a company can vary the objects for which the prospectus was issued and raise capital from the public for any of the following pu...
• Which of the following factors has the highest weightage in RBI’s Financial Inclusion Index?
• TRP Ltd. recorded operating profit of Rs.100,000, tax of Rs.17000, interest of Rs.34,000 and dividends of Rs.5000. What is the company’s net profit after...
• Calculate the Return on Capital employed of JKL Ltd based on given information?
• Which of the following is an interpersonal role of manager as per Mintzberg?
• As per law of demand, the quantity demanded of a normal product increases with _____
• Which of the following formula is used for simple investment multiplier?
• Which of the following entity issues the Jeevan Praman?
• The organization budgeted $400,000 for 40,000 hours of direct labor to complete 16,000 units of finished product. The firm used 42,000 direct labor hours a...
• Who is the regulator of the financial activities of the International financial services centre – GIFT City?
• Which of the following best describes a Global Depositary Receipt (GDR)?
• As per Companies Act 2013, a company can use which of the following modes to pay dividend? A.      cash B.      cheque C.       electronic ...