Q101
Open questionWhich of the following is not a source of credit information of prospective customers?
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Q102
Open questionMatch the items of List-I with those of List-II and indicate the correct answer:
| List-I | List-II |
| a. Net income approach | 1. Working capital management |
| b. Profitability index | 2. Over capitalisation |
| c. Concentration banking | 3. Capital structure planning |
| d. Lower rate of return | 4. Capital budgeting decision |
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Q103
Open questionAn agreement to exchange of one currency for another in one month is a
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Q104
Open questionWhich of the following are key benefits of Differential Voting Rights (DVRs)?
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Q105
Open questionWhich one of the following emphasises the qualitative aspects of working capital maangement?
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Q106
Open questionAssertion (A): The IRR of a project is the discount rate which reduces its NPV to zero.
Reason (R): A project is worth accepting if the IRR exceeds the cost of capital.
Reason (R): A project is worth accepting if the IRR exceeds the cost of capital.
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Q107
Open questionSelect the correct answer of the following statements
Statement (I): A Global Depositary Receipt (GDR) is a bank certificate issued in more than one country for shares in a foreign company.
Statement (II): A GDR is similar to American Depositary Receipt (ADR).
Statement (III): GDRs are called EDRs when private markets are anempting to obtain euros.
Statement (I): A Global Depositary Receipt (GDR) is a bank certificate issued in more than one country for shares in a foreign company.
Statement (II): A GDR is similar to American Depositary Receipt (ADR).
Statement (III): GDRs are called EDRs when private markets are anempting to obtain euros.
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Q108
Open questionSelect the correct answer regarding motives for holding inventories by firms.
1. Transaction motive
2. Environmental motive
3. Precautionary motive
4. Speculative motive
5. Competitive motive
1. Transaction motive
2. Environmental motive
3. Precautionary motive
4. Speculative motive
5. Competitive motive
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Q109
Open questionWhich of the following approaches would be consistent with a hedging (maturity matching) approach to financing working capital?
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Q110
Open questionCost of capital from all the sources of funds is called
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Q111
Open questionWhich one of the following equates the present value of cash out flows and the present value of expected cash inflows from a project?
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Q112
Open questionFormula for net cash inflow of a project is
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Q113
Open questionWhich of the following facts are true in the context of forfaiting?
1. Forfaiting enables exporters to receive immediate cash by selling their medium and long-term receivables - the amount an importer owes the exporterat a discount through an intermediary.
2. Banks never function as forfaiters.
3. Forfaiting protects against credit risk, transfer risk, and the risks posed by foreign exchange rate or interest rate changes.
1. Forfaiting enables exporters to receive immediate cash by selling their medium and long-term receivables - the amount an importer owes the exporterat a discount through an intermediary.
2. Banks never function as forfaiters.
3. Forfaiting protects against credit risk, transfer risk, and the risks posed by foreign exchange rate or interest rate changes.
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Q114
Open questionCost of equity share capital is more than cost of debt because
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Q115
Open questionAssertion (A): The management of working capital refers to the management of current assets and current liabilities.
Reason (R): The major thrust is on the management of current assets; because current liabilities arise in the context of current assets.
Reason (R): The major thrust is on the management of current assets; because current liabilities arise in the context of current assets.
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Q116
Open questionWhich one of the following is an internal hedging technique?
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Q117
Open questionFor the computation of cost of equity, arrange the following measures in the ascending order of accuracy
1. Capital Asset Pricing Model
2. Dividend-Price Ratio
3. Earning-Price Ratio
4. Dividend-Price Plus Growth Ratio
1. Capital Asset Pricing Model
2. Dividend-Price Ratio
3. Earning-Price Ratio
4. Dividend-Price Plus Growth Ratio
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Q118
Open questionIt is very difficult to interpret news in foreign exchange markets because
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Q119
Open questionHedging transaction is indicated by
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Q120
Open questionThe advantage of forward contracts over future contracts is that they
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