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(i) Which principle/technique is considered the base platform for TPM?

Six Sigma 5S SMED Kaizen

(ii) The pricing of niche products is appropriate to:

Perceived value pricing Penetration pricing Differential pricing Full cost pricing

(iii) Which of the following is/are not the element(s)/parameter(s) of the NCAER model of corporate distress prediction?

Net Worth Position Outstanding Liability Position Net Working Capital Position Cash Profit Position

(iv) Balance Score Card is a set of critical success factors.

Financial Non-financial Financial and non-financial None of the above

(v) The asset turnover ratio measures how efficiently a company uses its assets to generate sales.

Profitability Productivity Both (A) and (B) None of the above

(vi) Market price of a share is ₹ 50, earnings per share is ₹ 22.20, and dividend per share is ₹ 2.25. What would be the price earnings ratio?

4 6.25 10.25 12.50

(vii) An analyst has estimated ₹ 450 crore as future maintainable profits for Super Shine Limited. If the expected rate of return on capital employed is 15% and the Average Capital Employed is ₹ 1200 crore, the goodwill of Super Shine Limited at 4 years purchase will be:

₹ 180 crore ₹ 270 crore ₹ 1,080 crore ₹ 1,200 crore

(viii) A company has reported Profit Before Tax ₹ 1,000 crore. The applicable tax rate is 30% and it has ROE (Return on Equity) of 14%. If it has Other Equity of ₹ 4,000 crore and the face value of the share is ₹ 10, then its EPS (Earnings Per Share) is:

₹ 2 ₹ 5 ₹ 7 Insufficient Information

(ix) A company’s share is currently trading in the market at ₹ 450. It is estimated that its cost of equity is 18% and the value of growth opportunities is ₹ 250. Then, its Price/Earnings Ratio will be:

11.11 12.25 12.50 None of the above

(x) If a person buys a five-year bond in which he can realize a coupon rate of 5%, but the rate of inflation is 8%, the purchasing power of the bond interest has:

Increased Declined No effect on purchasing power All of these depend upon the market situation

Read the following scenario and answer the following questions: from 11 to 15
There are four firms (A, B, C and D) which operates under similar conditions and are comparable. The top management of Firm B is worried about the profitability of the firm and anticipates that the firm’s operational efficiency is relatively poor which is projected in declining market share of the company as well as other operational ratios.
Miss Lizi, the cost accountant of Firm B has been authorized by the top management to look into the matter and report back. Miss Lizi is able to extract the following data of the four firms.

Firm	Capital Employed (₹ in Millions)	Value Added (₹ in Millions)
A	8.6	1.8
B	2.2	0.2
C	15.6	2.8
D	31.6	4.1

She is of the opinion that the value added is the comparable output and the capital employed is the comparable input. Accordingly, she extracts the data of the two variables across the four firms.

Choose the correct option from the given alternatives based onthe above scenario:

(xi) Which firm has the highest efficiency?

Firm A Firm B Firm C Firm D

(xii) Relative efficiency of Firm B is:

85.88 43.40 62.08 100

(xiii) For an inefficient firm:

Input Target = Actual Input Input Target > Actual Input Input Target < Actual Input Input Target = Input Slack

(xiv) Input slack for Firm B is:

2.2 1.245 0 0.955

(xv) Output Target for Firm B is:

0.46 million 0.26 million 0.95 million 0.80 million

June 24 SPMBV Paper