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Test Series Part-3 (in Hindi)
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Heena Malhotra
Believe in Conceptual Learning.

  1. Financial Management By Heena Malhotra

  2. July 2016 Paper 2 By Heena Malhotra

  3. 5. Statement-I The accept-reject approach is adopted generally when a firm has a large amount of funds to invest in several projects at the same time. Statement- II Both the NPV and the IRR methods of investment appraisal are based on discounted cash flow approach. (1) Both the statements are correct. (2) Both the statements are incorrect. (3) Statement I is corect while Statement- II is incorrect. (4) Statement -I is incorrect while Statement-Il is correct. By Heena Malhotra

  4. 16. Match the items of List I with the items of List II: List - I List II Number of years required to recover the original cash a. Net present value b. Payback period c. Internal rate of outlay invested in a project. It is the rate of return which equates the present value of anticipated net cash flows with the iniial outlay. It is found out by dividing the average after-tax profit by the average investment. ii. iii. return d. Accounting rate of v. I is the difference between the present value of cash return inflows and present value of cash outflows Codes: (2) v ii (3)iv i ii (4) v iii By Heena Malhotra

  5. 18. Match the items of List I with the items of List II: List - I List II a. M.M. Hypothesis i. The cost of debt and cost of equity are assumed to without taxes be independent to the capital structure b. Net operating income In the absence of taxes a firm's market value and the cost of capital remain invariant to the capital structure changes approach . . Hypothesis under 111, The cost of equity is assumed to increase linearly corporate taxes with leverage d. Neincome approach iv. The value of the firml increase with debt due to the deductibility of interest charges for tax computations and the value of the levered firm will be higher than the unlevered firm Codes a b cd (2)v ii (3) i iv (4) vi ii By Heena Malhotra

  6. July 2016 Paper 3 By Heena Malhotra

  7. o 16. Frequently, maximization of profits is regarded as the proper objective of the firm, but it is not as inclusive a goal as that of maximizing shareholder wealth because o (1) total profits are not as important as earnings per share. o (2) earnings per share are more important than total profits. o (3) maximization of earnings per share is not a fully appropriate objective because it does not specify the duration of expected returns. o (4) maximization of earnings per share is not a fully appropriate objective because it does not specify the timing of expected returns. By Heena Malhotra

  8. 17. Match the items of List- I with the items of List-II List -I List II (i) Process of analyzing potential fixed asset (a) IRR investment. (b) NPV is equal to zero (ii) (Proportion of equity) x (cost of equity) + (c) Cost of capital (d) Capital budgeting Codes: (Proportion of debt) x (cost of debts) (iii) Project is acceptable (iv) NPV-Zero (l) (iii) (ii) (iv) (i) (4) (i) (ii) (iii) (iv) By Heena Malhotra

  9. 19. Which one is a correct statement? (1) (2) (3) (4) When the required rate of retum is more than the stated coupon rate, the value of the bond will be less than its face value. A bond is said to be selling at a premium when the required rate of return is less than stated coupon rate. The value of the bond will equal to its face value when the required rate of retum equals the stated coupon rate. If interest rates rise so that the required rate of return increases, then the bond will increase in value. By Heena Malhotra