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1. Performance will be a product of If the proportionate change in the price is more than the proportionate change in the demand, it is called:

Relatively inelastic demand. Relatively elastic demand. Perfectly inelastic demand. Perfectly elastic demand.

2.It is assumed that M. Ltd, would realize ₹ 40 million from the liquidation of its assets. It pays ₹ 20 million to its Creditors and Preference Shareholders in full and final settlement of their claims. If the number of equity shares of M. Ltd. is 2 million, the liquidation value per share would be

₹ 1 per share ₹ 10 per share ₹ 12 per share ₹ 15 per share

3. Given: the growth rate in the dividends is expected to be 8%, the Beta of the stock is 1.60 and the return on the market index is 13%, the required rate of return would be:

14% 16% 18% 20%

4. If the divestiture value is greater than the present value of the expected cash flows, the value of the divesting firm will:

increase on the divestiture decrease on the divestiture remain same on the divestiture None of the above

5. Under perfect competition and at the point of equilibrium of firm:

MC curve must be falling. MC curve must be rising. MR curve must be falling. None of the above

6. The demand curve for X is given by the equation: P = 24 — 1/2√q where P & q denote price and quantity respectively. Find the price point elasticity for P = ₹20:

64 48 72 60

7. RICO Ltd. has PAT of ₹ 40.20 lakh with extraordinary income of ₹ 7.00 lakh. If the cost of capital is 20% and the applicable tax rate is 40%, the value of RICO Ltd. will be:

₹ 250 lakh ₹ 180 lakh ₹ 150 lakh Insufficient information

8. A bottom-up approach used in strategy formulation is known as:

strategy implementation formulation of operational plan formulation of tactical plan reverse mapping

9. The probability of a product’s failure in relation to a time frame is categorized as the dimension of:

Conformance Durability Reliability Aesthetics

10. Monopolistic competition and Oligopoly are the examples of market:

perfect imperfect no market structure All of the above

11. Net Income ₹ 1650; Interest Expenses ₹ 20; Tax on Income ₹ 900; Cash Sales ₹ 5000 and Credit Sales ₹ 2100, in this case what would be the DuPont Return on Equity?

0.33 0.23 0.36 0.51

12. Net operating profit before tax 1 crore, Net operating profit after tax ₹ 98 lakh, Weighted average cost of capital 11.5%, Average cost of capital 13.5% and total capital ₹ 700 lakhs, then economic value added will be:

10.50 lakhs 16.50 lakhs 17.50 lakhs 18.75 lakhs

13. Market price of share ₹ 500; earnings per share ₹ 25, dividend per share ₹ 50, what would be earnings yield?

5% 10% 15% 2%

14. A company with PAT of ₹ 60 Crores, Tax Rate 30% plus a cess of 3%, Return on Equity is 20%, Other Equity f 225 Crores, PAT of the company is growing by 8% per year then equity share with a par value of ₹ 10 will have EPS of:

2 8 10 Insufficient information

15. Performance will be a product of

Efficiency and Utilization Utilization and Productivity Efficiency and Productivity Efficiency, Utilization and Productivity

Dec 23 SPMBV Paper