Sikkim-Manipal University of Health Medical and Technological Sciences (SMUHMTS) 2007-1st Sem M.B.A Business Administration FINANCE ISTER - Question Paper
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C) 430 D) None of these
43. Mrs. Shubhan, principal wishes to insitiute a scholarship of Rs. 5,000 for an outstanding learner every year. She wants to know the current value of investment which would yield Rs. 5,000 in perpetually at 10%
A) 25,000 B) 50,000
C) 10,000 D) 60,000
44. ABC Ltd. is expected to pay a dividend at Rs. 40 per share. Dividends are expected to grow perpetually at 10%. What is the market value of the share if capitalization rate is 15%?
A) 400 B) 600
C) 800 D) 890
45. Match the subsequent
Set A
1) Growth firm
2) Normal firm
3) Declining firm
Set B
1) R
3) R=K
A) 1-ii; 2-iii;3-i
B) 1-i; 2-ii;3-iii
C) 1-iii; 2-ii;3-i
D) None
46.For an initial outlay of Rs 15,000/- a machinery is expected to generate cash inflows for three years at Rs6,000 ,Rs7,000/- and 8,000 respectively .If the cost of capital is10% , the net current value (NPV) of the will be
a) Rs3, 254 [PV factor @ 10 % for three years are
b) Rs2, 244 1st year: 0.909
c) Rs4, 264 2nd year: 0.826
d) Rs5, 245 3rd year: 0.751
47. A company had issued 12% debentures aggregating Rs1,00,000 redeemable at 10% premium after five years .Its cost of debit before tax will be :-
A) 9.52% B) 10.50%
C) 11.55% D) 12.05%
48. A company has earned an operating profit of Rs2,00,000/- .It has equity capital of Rs5,00,000 /- 10% debentures of Rs 5,00,000 /- and 10% preference capital of Rs 2,00,000/- .The company is in the tax bracket of 50%.What will be the Degree of financial leverage ?
A) 0.60 B) 1.50
C) 1.82 D) 1.75
49. If the production is 24000 units per annum. Direct material 55%, Direct labour 35%, overheads 10%. every unit cost Rs. 15 and will be in process for 1 month on an avg.. presume that the wages and overheads do not accrue evenly during the time production is in progress. The amount of working capital locked up in work in progress will be
A) Rs 30000 b) Rs 3,60,000 C) Rs 2000 d) Rs 27,000
50. Which of the subsequent statements is / are not actual with respect to Bonus problems and Stock split?
i. Bonus problem : The par value remains identical
ii. Stock split : The par value remains identical
| Earning: Approval pending. |
