Question
What is the minimum Cash Reserve Ratio (CRR) that Small
Finance Banks (SFBs) are required to maintain as per RBI guidelines?ÂSolution
Small Finance Banks are required to maintain the same CRR and SLR as Scheduled Commercial Banks. Currently, the CRR is 4.5% of their Net Demand and Time Liabilities (NDTL).
A project will be financed with a mix of equity and a concessional government loan carrying interest below market and a partial guarantee fee. The proje...
ABC Ltd. is evaluating two projects. Project A requires ₹50 lakhs investment and offers IRR of 14%. Project B requires ₹40 lakhs and gives IRR of 12...
Which statement is correct regarding Weighted Average Cost of Capital (WACC)?
Company considers leasing equipment (annual lease ₹12 lakh for 5 years) vs buying at ₹45 lakh financed at 10% loan. Tax rate = 30%. Equipment deprec...
According to the Trade-off Theory, firms balance:
Which financing strategy balances liquidity risk and cost by matching short-term needs with short-term funds and permanent working capital with long-ter...
Profitability Index less than 1 indicates:
A firm is considering replacing its old machine with a new one.
Old machine: Book value = ₹8L, Salvage = ₹2L
New machine: Cost = ₹20...
ABC Ltd operates at 80% capacity producing 16,000 units. The cost per unit is:
• Direct Material ₹50
• Direct Labour ₹20
�...
Raman Ltd. is evaluating a new machine costing ₹60 lakhs with a useful life of 5 years. The expected annual operating cash inflows (after-tax) are ₹...
