Tuesday, March 2, 2010

STA630 New Paper

Question No: 1 ( Marks: 1 ) - Please choose one
Under which of the following, research method is not applicable?
► Business
► Government offices
► Imaginary worlds
► Health care


Question No: 2 ( Marks: 1 ) - Please choose one
Rationalism is the application of which of the following?
►Research solution
►Logic and arguments
►Reasoning
►Previous findings


Question No: 3 ( Marks: 1 ) - Please choose one
A teacher conducts an action research study of the problem-solving methods used by students in his ninth-grade Algebra I classes. Which of the following can he assume on the basis of his study?
►Results apply only to students in his ninth-grade Algebra I classes.
►Results apply only to students in Algebra I classes at his school.
►Results apply only to Algebra I students in ninth grade.
►Results apply to all math students.



Question No: 4 ( Marks: 1 ) - Please choose one
The part of the action research spiral that differentiates this research methodology from other kinds of research is;
►Looking at multiple sources of data.
►Taking action based on results.
►Thinking about or analyzing data in more than one way.
►The kinds of data that are collected.


Question No: 5 ( Marks: 1 ) - Please choose one
Which of the following can best be described as a categorical variable?
►Age
►Annual income
►Grade point average
►Religion


Question No: 6 ( Marks: 1 ) - Please choose one
Which of the following is not a role of hypothesis?
►Guides the direction of the study
►Identifies relevant and irrelevant facts
►Provides framework for organizing the conclusions
►Determine feasibility of conducting the study

Question No: 7 ( Marks: 1 ) - Please choose one
Deductive research is useful in which of the following cases?
►The researcher uses an existing theory to develop a hypothesis.
►The researcher subjects a hypothesis to empirical scrutiny.
►The researcher has to transform concepts within a hypothesis into researchable entities.
►Use of existing theory, empirical scrutiny, transformation of concerpt.

Question No: 8 ( Marks: 1 ) - Please choose one
When embarking upon a research project, which of the following issues should be considered?
►That the data from the study will be treated anonymously and confidentially.
►Coherent research question, pilot work and confidentially.
►Pilot work should be carried out to assess the practical issues and feasibility of the research.
►That the research should be based upon a coherent research question.


Question No: 9 ( Marks: 1 ) - Please choose one
Which of the following is likely to reduce the validity of a test?
►Unclear test directions
►Ambiguous test items
►Unclear, ambiguous and untaught items
►Untaught items


Question No: 10 ( Marks: 1 ) - Please choose one
Which of the following refers to Test reliability?
►The types of item-writing errors that exist in the test.
►Consistency in the test results.
►Generalizability of the research results.
►The extent to which the test measures what it is supposed to measure.

Question No: 11 ( Marks: 1 ) - Please choose one
Which of the following functions is performed by the Ratio scale?

►Categorize
►Distance
►Order
►Unique origin


Question No: 12 ( Marks: 1 ) - Please choose one
Which of the following is measured by the Interval scale?
►Order of the object
►Magnitude of the object
►Categorize the object
►All of the given options



Question No: 13 ( Marks: 1 ) - Please choose one
Which one of the following is not a type of scales used in measurement of concepts?
►Normal Scale
►Ordinal Scale
►Interval scale
►Ratio Scale


Question No: 14 ( Marks: 1 ) - Please choose one
Procedures determining which of the following two issues are rarely used in quantitative research?


►Reliability and validity
►Accessibility and replicability
►Quality and quantity
►Objectivity and subjectivity


Question No: 15 ( Marks: 1 ) - Please choose one
Which of the following is a legitimate purpose of a research plan?
►It forces you to think through every aspect of a study.
►It provides detailed procedures to guide the conduct of the study.
►It provides clear roadmap of the study.
►Writing a plan facilitates the evaluation of it.


Question No: 16 ( Marks: 1 ) - Please choose one
Which of the following statements might assist response rates?
►Please photocopy the questionnaire five times and pass on to your work colleagues.
►Please make sure that the questionnaire is completed with a fountain pen.
►Please read the attached journal article on the ontological foundations of positivism prior to completing the questionnaire.
►Please put the completed questionnaire in the enclosed stamped addressed envelope and place in the mail out tray.

Question No: 17 ( Marks: 1 ) - Please choose one
What should the researcher do if they have achieved a low response rate?


► Copy responses and paste them again.
► Abandon the research project entirely.
► Recognize and accept the possible limitations of a low response rate.
► Fill in some more questionnaires themselves.


Question No: 18 ( Marks: 1 ) - Please choose one
Which of the following is an example of a question about normative standards and values?
► How many workers are employed at this plant?
► What is your attitude towards the management at this plant?
► Do you always cast your vote in trade union elections?
► Are you aware of the main features of the European Union Directive for informing and consulting employees?



Question No: 19 ( Marks: 1 ) - Please choose one
Questions that include negatives should be avoided because:
► The respondent may miss out the negative word.
► The respondent may be unsure how to answer if the question includes a double negative.
► The respondent may be led by the question.
► All of the given options.


Question No: 20 ( Marks: 1 ) - Please choose one
Which of the following is likely to happen if clear instructions are not given as to how the respondent should answer the question?
► Respondents may delete inappropriate answers rather than select appropriate ones.
► Respondents may choose only one answer when they need to choose as many as apply.
► Respondents may complete questions that are not relevant to them.
► All of the given options.

Question No: 21 ( Marks: 1 ) - Please choose one
Which of the following is NOT an example of a problem with using social survey research to investigate behaviour?
► Respondents tend to answer by giving the most socially desirable answer.
► Respondents may inadvertently omit key terms in the question.
► Respondents may not give an honest reply to what they see as a threatening question.
► Respondents may be unwilling to reveal information as they believe they are likely to be identified.

Question No: 22 ( Marks: 1 ) - Please choose one
Why should a business researcher record and transcribe interviews?
► It overcomes all possible ethical considerations.
► The response of participants can be more readily shared with senior management.
► It allows a more thorough examination of what the interviewee has said.
► It allows the researcher to demonstrate his/her technical proficiency.


Question No: 23 ( Marks: 1 ) - Please choose one
Why does qualitative interviewing has an advantage over participant observation when it comes to longitudinal research?
► Repeat interviews are easier to organise.
► It allows for a better exploration of key issues.
► It is a more focused research method.
► Participant observers are prone to 'go native' during longitudinal research.


Question No: 24 ( Marks: 1 ) - Please choose one
Mr. Jamil is studying the use of individualized instruction with elementary school students. He is particularly interested in understanding what problems are encountered—and how those problems are resolved—when teachers switch to this approach. Which sampling strategy is he likely to use to select his sample?
► Intensity
► Convenience
► Purposive
► Quota


Question No: 25 ( Marks: 1 ) - Please choose one
The logic of purposive sampling is:
► To use participants because the researcher has access to them.
► That a random sample can generalize to a population.
► That a few information-rich participants studied in depth yield many insights about a topic.
► To include all participants, even though they are not all relevant to the problem.

Question No: 26 ( Marks: 1 ) - Please choose one
Which type of sampling strategy is exemplified by selecting specific principals because faculty and colleagues the researcher has spoken to believe them to be highly effective?
► Intensity
► Homogeneous
► Snowball
► Quota


Question No: 27 ( Marks: 1 ) - Please choose one
Which of the following is NOT characteristic of qualitative data?
► Rich descriptions
► Concise
► Voluminous
► Unorganized


Question No: 28 ( Marks: 1 ) - Please choose one
Which of the following is a drawback of a computerized analysis of data?
► The likelihood of re-examination of the data is diminished.
► The computer expedites the analysis of data but cannot code it.
► Analysis of qualitative data is best appreciated if a researcher has some experience doing so without a computer.
► Re-examination, lack of coding, analysis of qualitative data.


Question No: 29 ( Marks: 1 ) - Please choose one
Which of the following is NOT a strategy that can guide data interpretation?
► Pay attention to your topic or research focus as it will help guide your selection of important parts of your data.
► Examine categories with large amounts of data as they are likely identifying important concepts.
► Examine existing studies related to your topic to identify potential interpretative frameworks.
► Pay attention to your preconceived notions of the meaning of the data as it reflects a "grounded" perspective.



Question No: 30 ( Marks: 1 ) - Please choose one
A measure that indicates the average performance of a ***** on some variable is known as;
► Mean
► Analysis of covariance
► Chi square
► Standard deviation

Question No: 31 ( Marks: 1 ) - Please choose one
Which advice would you offer a novice researcher conducting his first observation?
► Observe only one behavior at a time
► Allow variables to emerge from the context
► Record behaviors only after leaving the site
► Develop a preconceived notion of what is going to help structure the observation


Question No: 32 ( Marks: 1 ) - Please choose one
Which of the following is linked with an abstract model of underlying relations or causal mechanism?
► Historical comparative research
► Social research
► Action research
► Experimental research

Question No: 33 ( Marks: 1 ) - Please choose one
Sampling in qualitative research is similar to which type of sampling in quantitative research?

► Simple random sampling
► Systematic sampling
► Quota sampling
► Purposive sampling


Question No: 34 ( Marks: 1 ) - Please choose one
Which of the following would generally require the largest sample size?

► Cluster sampling
► Simple random sampling
► Systematic sampling
► Proportional stratified sampling


Question No: 35 ( Marks: 1 ) - Please choose one
Determining the sample interval (represented by K), randomly selecting a number between 1 to K, and including each K element in your sample are the steps for which form of sampling?

► Simple Random Sampling
► Stratified Random Sampling
► Systematic Sampling
► Cluster sampling

Question No: 36 ( Marks: 1 ) - Please choose one
Which of the following means that all the items in a scale or index fit together or measure a single construct?

► Scale
► Index
► Unidimensionality
► Weighing

Question No: 37 ( Marks: 1 ) - Please choose one
Which of the following refers to the partials replicate or reproduce the same relationship that existed in the bivariate table before considering the control variable?

► Replication pattern
► Specification pattern
► Suppressor variable pattern
► Negative linear relationship


Question No: 38 ( Marks: 1 ) - Please choose one
The design in which one ***** of research participants is administered a treatment and is then compared, on the dependent variable, with another ***** of research participants who did not receive the experimental treatment is known as:
► One-***** posttest-only design
► One-***** pretest-posttest design
► Posttest-only design with non-equivalent groups
► Time series design


Question No: 39 ( Marks: 1 ) - Please choose one
Which one of the following refers to making inferences pertinent to the meaning and implications of the research investigation?
► Interpretation
► Conclusions
► Analysis
► Reporting


Question No: 40 ( Marks: 1 ) - Please choose one
Which of the following elements of Observation is/are included in Non Reactive research?

► External Appearance
► Count Behaviors
► Time Duration
► All of the given options


Question No: 41 ( Marks: 1 ) - Please choose one
Which of the following is/are the Varieties of Non-Reactive Observations?

► Physical Traces
► Archives
► Observations
► All of the given options

Question No: 42 ( Marks: 1 ) - Please choose one
What is the particular advantage of secondary analysis to business students?

► It is less challenging intellectually
► It guarantees positive results
► It is less expensive and less time consuming than primary analysis
► It enables students to gain experience of the workplace


Question No: 43 ( Marks: 1 ) - Please choose one
Which of the following type of question represent this statement," Teacher should create a friendly environment in the classroom"?

► Loaded question
► Confusing question
► Burdensome question
► Leading question

Question No: 44 ( Marks: 1 ) - Please choose one
Which of the following is to convince reviewers that the researcher is capable of successfully conducting the proposed research project?


► Literature review
► Research question
► Research proposal
► Research project
Question No: 45 ( Marks: 1 ) - Please choose one
In which type of sampling does every element in the population have a known, nonzero probability of selection?

► Probability sampling
► Absolute sampling
► Relative sampling
► Non probability sampling


Question No: 46 ( Marks: 1 ) - Please choose one
When a marketing manager tells the marketing department to schedule a test market in Lahore because he feels that this city is "typical" of the composition of the target market for a new product nationally, this is an example of what type of sample?

► Judgment sample
► Convenience sample
► Stratified sample
► Cluster sample

Question No: 47 ( Marks: 1 ) - Please choose one
Ali is an interviewer and incorrectly entered respondents’ choices on ten surveys. This type of error is called:

► Non respondent error
► Random error
► Respondent error
► Editing error


Question No: 48 ( Marks: 1 ) - Please choose one
When a field interviewer records an impossible answer (e.g. birth date: 1850), this means that the data need to be:

► Coded
► Deleted
► Edited
► None of the given options

Question No: 49 ( Marks: 1 ) - Please choose one
All of the following are software packages that can be used for data analysis EXCEPT:

► SPSS
► SAS
► Excel
► Word


Question No: 50 ( Marks: 1 ) - Please choose one
A stratified sample in which the number of sampling units drawn from each stratum is in proportion to the population size of that stratum is called :

► Proportional stratified sample
► Balanced stratified sample
► Even stratified sample
► Primary stratified sample

Question No: 51 ( Marks: 1 ) - Please choose one
Which experimental design has the following symbols: O1 X O2?

► Solomon four-***** design
► Static ***** design
► One-***** pretest-posttest design
► None of the given options


Question No: 52 ( Marks: 1 ) - Please choose one
What is an example of a true experimental design?

► Pretest posttest control ***** design
► Non equivalent control ***** design
► One-shot case study design
► One-***** pretest posttest design

Question No: 53 ( Marks: 1 ) - Please choose one
The researcher examining descriptive statistics for any particular variable is using which type of statistics?

► Multivariate
► Interval
► Univariate
► None of the given options


Question No: 54 ( Marks: 1 ) - Please choose one
When salespeople are tested one year after a sales training program and perform better on the exam, not because of the training program, but because they have gained one year's experience in sales, this is an example of a:

► Selection effect
► Maturation effect
► History effect
► Cohort effect


Question No: 55 ( Marks: 1 ) - Please choose one
Mr. Ali is concerned about potential problems with the reliability of his observers. Which strategy would you suggest, he should follow?

► Train his observers carefully
► Monitor his observers in the field
► Specify the observational variables
► All of the given options


Question No: 56 ( Marks: 1 ) - Please choose one
Which type of observer is likely to get a reasonable insight into the participant's views and develop a good rapport with him?

► Non participant
► Participant
► Structured participant
► All of the given options


Question No: 57 ( Marks: 1 ) - Please choose one
Which of the following is just an understanding the culture of people from their own perspective?

► Ethnography
► Non-Participant Observation
► Observer effect
► None of the given options

Question No: 58 ( Marks: 1 ) - Please choose one
How many independent variables are there in a comparative study investigating the effect of gender on empathy?

► It depends on how many levels of empathy are studied
► One
► There are no independent variables
► None of the given options



Question No: 59 ( Marks: 1 ) - Please choose one
When a manufacturer studies his most successful retailer in depth in order to determine some better ideas for displaying bicycles in its retail stores, this is an example of:

► An experiment
► A test market
► A case study
► Causal research


Question No: 60 ( Marks: 1 ) - Please choose one
Which of the following is a good characteristic for a focus ***** moderator to possess?

► Good listener
► Ability to make people feel comfortable so that they will talk in the *****
► Ability to control discussion without being overbearing
► All of the given options

Question No: 61 ( Marks: 1 ) - Please choose one
In a prepared report, what should follow the Methodology Section?


► Results
► References
► Title page
► Tables
Question No: 62 ( Marks: 1 ) - Please choose one
________ are the most important qualitative research procedure.
► Focus groups
► Depth interviews
► Case study
► All of the given options

Question No: 63 ( Marks: 1 ) - Please choose one
Constructing a detailed moderator’s outline for use during the focus ***** interviews involves extensive discussions among the ______, _______, and ______.

► Researcher; moderator; and respondents
► Researcher; client; moderator
► Researcher; client; respondent
► Client; respondent; moderator


Question No: 64 ( Marks: 1 ) - Please choose one
Which of the following represents this reference, “Cornett, M., Wiley, B. J., & Sankar, S. (1998). The pleasures of nurturing, London: McMunster Publishing”?


► Book by more than one author
► Edited book
► Book by a single author
► Journal Article

Question No: 65 ( Marks: 3 )
Explain the use of filter questions?

Question No: 66 ( Marks: 5 )
How would you conduct a survey to collect Secondary Data? Explain it with the help of example.

Question No: 67 ( Marks: 10 )
What are major steps which are evaluated during pilot testing?

Question No: 68 ( Marks: 10 )
How observations can be structured in non-reactive research?

MGT201 New Paper

FINALTERM  EXAMINATION
Fall 2009
MGT201- Financial Management (Session - 3)
Time: 120 min
Marks: 87
    
Question No: 1    ( Marks: 1 )    - Please choose one
 Which of the following would NOT improve the current ratio?
       Borrow short term to finance additional fixed assets
       Issue long-term debt to buy inventory
       Sell common stock to reduce current liabilities
       Sell fixed assets to reduce accounts payable
   
Question No: 2    ( Marks: 1 )    - Please choose one
  Which group of ratios measures how effectively the firm is using its assets?
        Liquidity ratios
        Debt ratios
        Coverage ratios
       Activity ratios
   
Question No: 3    ( Marks: 1 )    - Please choose one
 The RBS pays 5.60%, compounded daily (based on 360 days), on a 9-month certificate of deposit, if you deposit Rs. 20, 000 you would expect to earn around __________ in interest.  
       Rs.840

       Rs.858

       Rs.1,032

       Rs.1,121

   
Question No: 4    ( Marks: 1 )    - Please choose one
 Assume that the interest rate is greater than zero. Which of the following cash-inflow streams totaling Rs.1, 500 would you prefer? The cash flows are listed in order for Year 1, Year 2, and Year 3 respectively.
       Rs.700 Rs.500 Rs.300

       Rs.300 Rs.500 Rs.700

       Rs.500 Rs.500 Rs.500

       Any of the above, since they each sum to Rs.1,500
   
Question No: 5    ( Marks: 1 )    - Please choose one
 Which of the following would be considered a cash-flow item from an "operating activity"?
       Cash outflow to the government for taxes

       Cash outflow to shareholders as dividends

       Cash inflow to the firm from selling new common equity shares

       Cash outflow to purchase bonds issued by another company

   
Question No: 6    ( Marks: 1 )    - Please choose one
 Which of the following will NOT equate the future value of cash inflows to the present value of cash outflows?
       Discount rate

       Profitability index

       Internal rate of return

       Multiple Internal rate of return

   
Question No: 7    ( Marks: 1 )    - Please choose one
 Which of the following is a legal agreement between the corporation issuing bonds and the bondholders that establish the terms of the bond issue?


        Indenture

        Debenture

        Bond

        Bond trustee

   
Question No: 8    ( Marks: 1 )    - Please choose one
 __________ is a high-risk, high-yield bond.
       Zero coupon bond

       Mortgage bond
       Junk bond
       Income bond

   
Question No: 9    ( Marks: 1 )    - Please choose one
 A coupon bond pays annual interest, has a par value of Rs.1,000, matures in 4 years, has a coupon rate of 10%, and has a yield to maturity of 12%.  What is the current yield on this bond?

       10.65%
       10.45%
       10.95%
       10.52%
   
Question No: 10    ( Marks: 1 )    - Please choose one
 When a bond will sell at a discount?

       The coupon rate is greater than the current yield and the current yield is greater than yield to maturity
       The coupon rate is greater than yield to maturity
       The coupon rate is less than the current yield and the current yield is greater than the yield to maturity
       The coupon rate is less than the current yield and the current yield is less than yield to maturity
   
Question No: 11    ( Marks: 1 )    - Please choose one
 What is the price of a stock?

       The future value of all expected future dividends, discounted at the dividend growth rate
       The present value of all expected future dividends, discounted at the dividend growth rate
       The future value of all expected future dividends, discounted at the investor’s required return
       The present value of all expected future dividends, discounted at the investor’s required return
   
Question No: 12    ( Marks: 1 )    - Please choose one
 Which of the following combinations will produce the highest growth rate?  Assume that the firm's projects offer a higher expected return than the market capitalization rate.

       A high plowback ratio and a high P/E ratio
       A high plowback ratio and a low P/E ratio
       A low plowback ratio and a low P/E ratio
       A low plowback ratio and a high P/E ratio
   
Question No: 13    ( Marks: 1 )    - Please choose one
 Diversification can reduce risk by spreading your money across many different ______________.

       Investments
       Markets
       Industries
       All of the given options
   
Question No: 14    ( Marks: 1 )    - Please choose one
 The square of the standard deviation is known as the ________.

       Beta
       Expected return
       Coefficient of variation
       Variance
   
Question No: 15    ( Marks: 1 )    - Please choose one
 Which of the following  is NOT a major cause of systematic risk.

       ► A worldwide recession
       A world war
       World energy supply
       Company management change
   
Question No: 16    ( Marks: 1 )    - Please choose one
 _________ means expanding the number of investments which cover different kinds of stocks.






       Diversification
       Standard deviation
       Variance
       Covariance
   
Question No: 17    ( Marks: 1 )    - Please choose one
 Which of the following would NOT be the part of the risk if the stock is a single stock investment?

       Company specific risk
       Un-diversifiable risk
       Diversifiable risk
       Random risk
   
Question No: 18    ( Marks: 1 )    - Please choose one
 To limit volatility what should be the appropriate action?
       To diversify
       To check the stocks prices daily
       To own just a few securities
       Not to invest in risky securities
   
Question No: 19    ( Marks: 1 )    - Please choose one
 In efficient market the stock price depends upon the required return which depends upon _________.

       Market risk
       Total risk
       Diversified risk
       Non- Systematic risk
   
Question No: 20    ( Marks: 1 )    - Please choose one
 Why markets and market returns fluctuate?

       Because of political factors
       Because of social factors
       Because of socio-political factors
       Because of macro systematic factors
   
Question No: 21    ( Marks: 1 )    - Please choose one
 The overall (weighted average) cost of capital is composed of weighted averages of which of the following?
       The cost of common equity and the cost of debt
        The cost of common equity and the cost of preferred stock
       The cost of preferred stock and the cost of debt
       The cost of common equity, the cost of preferred stock, and the cost of debt
   
Question No: 22    ( Marks: 1 )    - Please choose one
 Which of the following costs would be considered a fixed cost?
       Raw materials
       Depreciation
       Bad-debt losses
        Production labor
   
Question No: 23    ( Marks: 1 )    - Please choose one
 Assume the nominal interest rates (annual) in the country of Freedonia and the United States are 6% and 12% respectively. What is the implied 90-day forward rate if the current spot rate is 5 Freedonian marks (FM) per U.S. dollar?
       4.732
       4.927
       5.074
        5.283
   
Question No: 24    ( Marks: 1 )    - Please choose one
 A firm that acquires another firm as part of its strategy to sell off assets, cut costs, and operates the remaining assets more efficiently is engaging in __________.
       A strategic acquisition
        A financial acquisition
       Two-tier tender offer
       Shark repellent
   
Question No: 25    ( Marks: 1 )    - Please choose one
 When a firm can acquire another firm?
       Only by purchasing the assets of the target firm
       Only by purchasing the common stock of the target firm
       By either purchasing the assets or the common equity of the target firm
       None of the given options
   
Question No: 26    ( Marks: 1 )    - Please choose one
 Which of the following is NOT a type of financial lease arrangement?
       Sale and leaseback
       Indirect leasing
        Leveraged leasing
       All of the given options
   
Question No: 27    ( Marks: 1 )    - Please choose one
 The Board of Directors announces the amount and date of the next dividend on the __________ date; while the __________ date is the first date on which the purchaser of a stock is no longer entitled to the recently declared dividend.
       Declaration; record
       Ex-dividend; record
       Declaration; ex-dividend
       Payment; record
   
Question No: 28    ( Marks: 1 )    - Please choose one
 What would you expect to happen to the price of a share of stock on the day it goes ex-dividend?
       The price should increase by the amount of the dividend
       The price should decrease by the amount of the dividend
       The price should decrease by one-half the amount of the dividend
       The price should remain constant
   
Question No: 29    ( Marks: 1 )    - Please choose one
 What is the amount of the annual interest tax shield for a firm with Rs. 3 million in debt that pays 12% interest if the firm is in the 35% tax bracket?
       Rs.126, 000
       Rs.234, 000
       Rs.360, 000
       Rs.1, 050,000
   
Question No: 30    ( Marks: 1 )    - Please choose one
 While calculating the Stock Portfolio Risk using 3x3 Matrix Approach, non-diagonal terms shown in Boxes are called:
       Variance
       Coefficient
       Covariance
       Correlation
   
Question No: 31    ( Marks: 1 )    - Please choose one
 While calculating the stock beta graphically, the formula to calculate the beta coefficient for stock B is:
       (rM* - rRF) / (rB* - rRF)
       (rB* - rRF) / (rM* - rRF)
       (rB* - rRF) / rRF
       (rB* - rRF) / rM*
   
Question No: 32    ( Marks: 1 )    - Please choose one
 While analyzing any portfolio the value of “r” represents which of the following?

       Internal rate of return
       Expected rate of return
       Required rate of return
       Assumed rate of return
   
Question No: 33    ( Marks: 1 )    - Please choose one
 If a stock is part of totally diversified portfolio then which of the following is TRUE for that stock?
       Stock's total Risk = Company Risk
       Stock's total Risk = Market Risk
       Stock's total Risk = Market Risk + Company Risk
       All of the given options
   
Question No: 34    ( Marks: 1 )    - Please choose one
 High uncertainty is associated with which of the following?
       Preferred stock
       Common stock
       Bonds
       T –Bills
   
Question No: 35    ( Marks: 1 )    - Please choose one
 The date on which the names of stockholders in the Stock Transfer Register of firm are documented is referred as:
       Declaration Date
       Holder-of-record Date
       Ex-Dividend Date
       Payment Date
   
Question No: 36    ( Marks: 1 )    - Please choose one
 Operating revenue can be calculated from which of the following formulas?
       Operating Revenue = Fixed cost * Quantity + Variable cost
       Operating Revenue = Price / Quantity +Variable cost
       Operating Revenue = Sale price * Quantity
       Operating Revenue = Variable cost * Quantity / Fixed cost
   
Question No: 37    ( Marks: 1 )    - Please choose one
 Which of the following statements is TRUE about an aggressive approach to finance working capital?
       Financing seasonal requirements of current assets with short-term debt and permanent requirement of current assets with long term debt
       Financing permanent requirements of current assets with short-term debt and seasonal requirement of current assets with long term debt
       Financing seasonal as well as permanent requirements of current assets with short-term debt
       Financing seasonal as well as permanent requirements of current assets with long term debt
   
Question No: 38    ( Marks: 1 )    - Please choose one
 Capital structure theory is presented by which of the following?
       Robert Alan Hill
       Modigliani & Miller
       Brigham & Houston
       Van Horne & Gittman
   
Question No: 39    ( Marks: 1 )    - Please choose one
 All of the following are the examples of permanent financing EXCEPT:
       Common Equity
       Current Liabilities
       Long-term Loans
       Bonds
   
Question No: 40    ( Marks: 1 )    - Please choose one
 Which of the followings proposes that the value of the firm is independent of its capital structure?
       The Capital Asset Pricing Model
       M&M capital structure theory
       The law of variable proportion
       The Law of One Price
   
Question No: 41    ( Marks: 1 )    - Please choose one
 Value of the firm can be calculated with the help of which of the following formulas?
       Price of a share x No. of shares outstanding
       Price of a share x debt / equity
       Price of a share / No. of shares outstanding
       Price of a share x earnings after tax / equity
   
Question No: 42    ( Marks: 1 )    - Please choose one
 If the sales are expected to be poor in future than management wants to raise capital through which of the following:
       Debt financing
       Equity financing (common & preferred stock)
       Term finance certificates
       National saving certificates
   
Question No: 43    ( Marks: 1 )    - Please choose one
 Company A has to purchase another company. How do Company A pay for buying the other company?
       In Cash
       In Shares
       Bank Borrowing
       All of the given options
   
Question No: 44    ( Marks: 1 )    - Please choose one
 Which of the following mathematical expressions depicts divestiture?
       5-1=4
       5-1=6
       5+1=6
       None of the given options
   
Question No: 45    ( Marks: 1 )    - Please choose one
 Under efficient market, the effect of debt on WACC can be represented with the help of which of the following?
       Straight line
       U shaped curve
       Concave
       Time to time fluctuation
   
Question No: 46    ( Marks: 1 )    - Please choose one
 Under traditional view, the effect of debt on WACC can be represented with the help of which of the following?
       Straight line
       U shaped curve
       Concave
       Time to time fluctuation
   
Question No: 47    ( Marks: 1 )    - Please choose one
 According to the trade off theory, value of the firm rises as a result of ____________.
       Tax saving
       Increase in EPS
       Increase in EBIT
       Saving in cost of debt
   
Question No: 48    ( Marks: 1 )    - Please choose one
 Which of the following statements is true about business risk?
       The financial risk of a firm decreases when it takes on a risky project
       The financial risk of a firm increases when it takes on more equity
       The business risk of a firm increases when it takes on a risky project
       The business risk of a firm increases when it takes on more debt
   
Question No: 49    ( Marks: 1 )    - Please choose one
 Under Net income approach, which of the following is a correct sequence of calculating cost of capital?
       Net income – Total firm’s market value – WACC
       Net income – WACC – total firm’s market value
       WACC – Net income – market value of equity
       Market value of firm – WACC – Net income
   
Question No: 50    ( Marks: 1 )    - Please choose one
 From which of the following equations, net income can be calculated?
       NI = (EBIT - xD rD) (1 - Tc)
       NI = (EAT - xD rD) (1 - Tc)
       NI = (EBIT + xD rD) (1 - Tc)
       NI = (EBIT - xD rD) / (1 - Tc)
   
Question No: 51    ( Marks: 1 )    - Please choose one
 Which of the following refers to a unique type of Japanese corporate organization based on a close partnership between government and businesses?
       Keiretsu
       Chaebols
       Lean and mean
       Options
   
Question No: 52    ( Marks: 1 )    - Please choose one
 Which of the following is a South Korea type business in that is a conglomerate with Monopoly power?
       Keiretsu
       Chaebols
       Lean and mean
       Options
   
Question No: 53    ( Marks: 1 )    - Please choose one
 What is bid rate for currency?
       Buying rate for currency
       Selling rate of currency
       Forward rate of currency
       Ask rate of currency
   
Question No: 54    ( Marks: 1 )    - Please choose one
 What is the primary principle for money changers?
       Ask rate should be less than bid rate
       Ask rate should be greater than bid rate
       Ask rate should be equal to bid rate
       Bid rate should be greater than ask rate
   
Question No: 55    ( Marks: 3 )
 Calculate tax shield from the given information.
Corporate tax rate is 35% and amount of debt is Rs. 20, 000 and rate of return is 8%.
   
Question No: 56    ( Marks: 5 )
 How can a manager calculate the opportunity cost of capital for a project? Give answer in bulleted form only.

    
Question No: 57    ( Marks: 5 )
 Suppose you are a financial manager of XYZ Corporation and you have been assigned the task to calculate the numerical value of your firm’s WACC (Weighted Average Cost of Capital), what procedure would you follow keeping in mind that the firm is using NOI (Net Operating Income) approach?
   
Question No: 58    ( Marks: 10 )
 Suppose that the risk free rate is 12% and the expected market return is 20%. The FM Corporation has a beta of 0.75 and the Gord Corporation has a beta of 1.25.

a.      Find the expected return on the FM Corporation.
b.     Find the expected return on the Gord Corporation.
c.      Suppose that because of a suddenly unanticipated increase in inflation, the risk free rate raises to 16% and the market risk premium remains at 8%. Find the expected return on of FM and Gord.


   
Question No: 59    ( Marks: 10 )
 Ammar Watch Company is the renowned ladies watch manufacturers. They are offering watch in the market at a price of Rs. 30. They have estimated that they will manufacture and sale almost 30, 000 watches. Fixed cost for the preparation of these watches is Rs.150, 000. Variable cost associated with the preparation of these watches is Rs. 20 per watch.               
From the above information you are required to calculate the followings:
·     What is the profit or loss for the units of 8, 000 or 18, 000?
·     Calculate the break even point? (in units and sales)