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1. Selling shares without owing them, to buy them back at a future date at a lower price in expectation that price will drop is known as

Call option Put option Long position Selling short

2. A 91-day Treasury Bill with face value of 100 is issued at 98. The annualized yield on the same would be (Assume 365 days a year)

3.09% 8.18% 14.09% 13.09%

3. Which model shows that the current dividend depends partly on current earnings and partly on previous year's dividend?

Gordon's Model M.M. Model Dividend Discount Model Lintner Model

4. Rajesh Polymers Ltd. issued 4,00,000, 9% perpetual debentures at a premium of 10%. The costs of floatation are 2%. The tax rate is 50%. What is the after-tax cost of debt?

4.15% 4.17% 14.17% 4.20%

5. The pecking order theory has emerged as an alternative theory to

Trade off theory The traditional approach Net income approach Net operating income approach

6. How long it will take for ₹1,00,000 to double at a compound rate of interest of 12% per annum approximately?

Five years Six years Seven years Eight years

7. Which of the following is not an objective of Digitalization?

Wide spread access of data Preservation of data Large Group of users Large physical storage space

8. Following information has been taken from the Balance Sheet of MJK Ltd. 8% debentures payable 15 Lakh, 12% preference shares 15 Lakh and ordinary shareholders' equity is 40 Lakh. You have to calculate the capital gearing ratio of the company.

4:2 4:3 4:7 4:9

9. Cluster analysis is the process of assigning a set of data to subset so that observations can be made. Cluster analysis is part of

Supervised Learning Unsupervised Learning Semi Supervised Learning Reinforcement Learning

10. Systematic risk of the firm is 1.5, 182 days treasury bills currently yield 9%, expected yield on the market portfolio of assets is 14%. Determine the cost of equity capital based on the given data.

15% 15.5% 16% 16.5%

11. Which of the following is not a technique of data mining?

KNN algorithm Neural network Decision tree Predictive analytics

12. The cash outlay for a project is ₹2 lakh. The cash inflows that are expected to be generated are ₹1,20,000 at the end of the first year and ₹1,60,000 at the end of the second year. If the discounting rate is 10%, then the profitability index is

1.44 1.25 1.21 1.42

13. Average collection period is 3 months, cash sales and average receivables are ₹3,00,000 and ₹4,00,000 respectively. The total amount of sales will be

₹18,00,000 ₹19,00,000 ₹22,00,000 ₹25,00,000

14. Under ABC Analysis method of stock control, 'A' category items are

Smaller in quantity but larger in value Larger in quantity but smaller in value Smaller in quantity and smaller in value Larger in quantity and larger in value

15. If the profit after taxes of a company is ₹5,40,000, the preference dividend is ₹60,000 and the dividend payable to ₹1,60,000 equity shares is ₹2 per share, then the equity dividend coverage ratio is

1.50 times 1.62 times 1.55 times 1.80 times

June 24 Financial Management & Data Analytics Paper