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Question 1 reset
Which of the following can be transferred under the Transfer of Property Act, 1882?
Question 2 reset
‘A’ leases land to ‘B’ on condition that he shall walk a hundred miles in an hour. The lease is _________.
Question 3 reset
How is stamp duty paid in transactions where more than one instrument is required?
Question 4 reset
As per the Competition Act, 2002, the sale of goods at a price, which is below the cost of production with a view to eliminate the competitors is called __________.
Question 5 reset
An agreement among the companies at the same level of the production chain is called __________ in competition parlance.
Question 6 reset
As per section 40(b) of the Income Tax Act, 1961, upto __________ % per annum simple interest on capital is allowed towards remuneration of working partners.
Question 7 reset
Salary under section 17(1) of the Income Tax Act, 1961 does not include _____.
Question 8 reset
Who determines the amount of claim due to a creditor under the Insolvency and Bankruptcy Code, 2016?
Question 9 reset
Under the Insolvency and Bankruptcy Code, 2016, debts owed to a secured creditor in the event such secured creditor has relinquished security ranks equally with __________.
Question 10 reset
Which of the following is not a financial service under the Insolvency and Bankruptcy Code, 2016?
Question 11 reset
Which of the following situations would invoke "question of law"?
Question 12 reset
Karan bought 1000 share of Infosys Limited at Rs. 910/- from his broker excluding brokerage and taxes however current market price of that share was Rs. 915/-. In this statement amount of Rs. 915/- reflects __________.
Question 13 reset
Under the Insolvency and Bankruptcy Code, 2016, the fees of the liquidator is paid from the proceeds of sale of the __________of the corporate debtor.
Question 14 reset
Value of a firm is usually based on ________.
Question 15 reset
An asset is officially appraised and priced on _____.
Question 16 reset
Which one of the following is covered in the valuation report?
Question 17 reset
Which of the following valuation methods would most likely not be used for business valuation?
Question 18 reset
When attempting to build a risk premium into the required returns of stocks in a developing country, an analyst should use the __________.
Question 19 reset
A disadvantage of the EV method for valuing equity is that the following information may be difficult to obtain _________.
Question 20 reset
An analyst is valuing a firm's equity using the ‘Enterprise Value to Revenue Ratio’ of similar firms. Which of the following is not a factor that the analyst should use?
Question 21 reset
Which of the following methods is included in ‘Asset based approach’ (cost-based approach)?
Question 22 reset

Attempt Questions based upon the following case study:

Mr. Dev, a research analyst, has been hired to value RC Ltd., a company that is currently experiencing rapid growth and expansion. Dev is an expert in the communications industry and has had extensive experience in valuing similar firms. He is convinced that a value for the equity of RC Ltd. can be reliably obtained through the use of a three-stage free cash flow to equity (FCFE) model with declining growth in the second stage. Based on up-to-date financial statements, he has determined that the current FCFE per share is Rs.1.00. He has prepared a forecast of expected growth rates in FCFE as follows:

  1. Stage 1 = 8% for years 1 through 3
  2. Stage 2 = 7.0% in year 4, 6.5% in year 5, 6.0% in year 6
  3. Stage 3 = 4.0% in year 7 and thereafter

Moreover, Dev has determined that the company has a beta of 1.6. The current risk-free rate is 3.0%, and the equity risk premium is 5.0%.
Other financial information:

  • Outstanding shares = 100 lakh shares
  • Tax rate = 40.0%
  • Interest expense = Rs.30,00,000

Question

The required rate of return is closest to __________.

Question 23 reset

Attempt Questions based upon the following case study:

Mr. Dev, a research analyst, has been hired to value RC Ltd., a company that is currently experiencing rapid growth and expansion. Dev is an expert in the communications industry and has had extensive experience in valuing similar firms. He is convinced that a value for the equity of RC Ltd. can be reliably obtained through the use of a three-stage free cash flow to equity (FCFE) model with declining growth in the second stage. Based on up-to-date financial statements, he has determined that the current FCFE per share is Rs.1.00. He has prepared a forecast of expected growth rates in FCFE as follows:

  1. Stage 1 = 8% for years 1 through 3
  2. Stage 2 = 7.0% in year 4, 6.5% in year 5, 6.0% in year 6
  3. Stage 3 = 4.0% in year 7 and thereafter

Moreover, Dev has determined that the company has a beta of 1.6. The current risk-free rate is 3.0%, and the equity risk premium is 5.0%.
Other financial information:

  • Outstanding shares = 100 lakh shares
  • Tax rate = 40.0%
  • Interest expense = Rs.30,00,000

Question

The terminal value in year 6 is closest to __________.

Question 24 reset

Attempt Questions based upon the following case study:

Mr. Dev, a research analyst, has been hired to value RC Ltd., a company that is currently experiencing rapid growth and expansion. Dev is an expert in the communications industry and has had extensive experience in valuing similar firms. He is convinced that a value for the equity of RC Ltd. can be reliably obtained through the use of a three-stage free cash flow to equity (FCFE) model with declining growth in the second stage. Based on up-to-date financial statements, he has determined that the current FCFE per share is Rs.1.00. He has prepared a forecast of expected growth rates in FCFE as follows:

  1. Stage 1 = 8% for years 1 through 3
  2. Stage 2 = 7.0% in year 4, 6.5% in year 5, 6.0% in year 6
  3. Stage 3 = 4.0% in year 7 and thereafter

Moreover, Dev has determined that the company has a beta of 1.6. The current risk-free rate is 3.0%, and the equity risk premium is 5.0%.
Other financial information:

  • Outstanding shares = 100 lakh shares
  • Tax rate = 40.0%
  • Interest expense = Rs.30,00,000

Question

The per share value Dev should assign to RC Ltd. is closest to __________.

Question 25 reset

Attempt Questions based upon the following case study:

Mr. Dev, a research analyst, has been hired to value RC Ltd., a company that is currently experiencing rapid growth and expansion. Dev is an expert in the communications industry and has had extensive experience in valuing similar firms. He is convinced that a value for the equity of RC Ltd. can be reliably obtained through the use of a three-stage free cash flow to equity (FCFE) model with declining growth in the second stage. Based on up-to-date financial statements, he has determined that the current FCFE per share is Rs.1.00. He has prepared a forecast of expected growth rates in FCFE as follows:

  1. Stage 1 = 8% for years 1 through 3
  2. Stage 2 = 7.0% in year 4, 6.5% in year 5, 6.0% in year 6
  3. Stage 3 = 4.0% in year 7 and thereafter

Moreover, Dev has determined that the company has a beta of 1.6. The current risk-free rate is 3.0%, and the equity risk premium is 5.0%.
Other financial information:

  • Outstanding shares = 100 lakh shares
  • Tax rate = 40.0%
  • Interest expense = Rs.30,00,000

Question

The free cash flow to the firm (FCFF) is closest to __________.

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