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(D) Net Income /average Total Asset: (A) It Signifies A Ownership Right in The Company

The document contains 20 multiple choice questions about financial terms and concepts. The questions cover topics such as debt instruments, return on assets, margin requirements, present value, dividend yield, earnings per share, debt vs equity market instruments, compound interest, market capitalization, depositories, bids and asks, and the interest coverage ratio.

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Anish Dalmia
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39 views3 pages

(D) Net Income /average Total Asset: (A) It Signifies A Ownership Right in The Company

The document contains 20 multiple choice questions about financial terms and concepts. The questions cover topics such as debt instruments, return on assets, margin requirements, present value, dividend yield, earnings per share, debt vs equity market instruments, compound interest, market capitalization, depositories, bids and asks, and the interest coverage ratio.

Uploaded by

Anish Dalmia
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Which of the following is not true about a debt instrument?

  [ 1 Mark ]

(a) It signifies a ownership right in the company.

(b) It carries interest paying obligation.

(c) It has a fixed maturity.

(d) None of the above

(e) I am not attempting the question

Return on Total Asset is equal to __________.   [ 2 Marks ]

(a) Gross Income/Average Total Asset


(b) Average total asset/Gross Income
(c) Return on Equity/Average total Asset
(d) Net income /Average Total Asset
(e) I am not attempting the question

The Margin which takes care that all daily losses must be met by the investor by depositing of further collateral by
the close of business, the following day is known as _________.   [ 1 Mark ]

(a) Mark to Market Margin

(b) Minimum Margin

(c) Cross Margin

(d) Initial Margin

(e) I am not attempting the question

What is the present value of Rs. 6000 receivable after two years at a discount rate of 5% under continuous
discounting?   [ 2 Marks ]

(a) Rs. 5429.02

(b) Rs. 6000

(c) Rs. 5700

(d) Rs. 6300

(e) I am not attempting the question

What is the dividend yield of ABC Co Share having a face value of Rs 100, market value of 360 and an annual dividend
of Rs 10?   [ 1 Mark ]

(a) 1%

(b) 2.77%
(c) 10%

(d) 4%

(e) I am not attempting the question

Earnings Per Share (EPS) is calculated by _________.   [ 2 Marks ]

(a) Gross Profit / No. of equity shareholders

(b) Net Profit / No. of equity shareholders

(c) Gross Profit / No. of Ordinary shares outstanding

(d) Net Profit / No. of Ordinary shares outstanding

(e) I am not attempting the question

Which amongst these is not a Debt market instrument?   [ 1 Mark ]

(a) Public Sector Units bonds

(b) Corporate Securities

(c) FIIs

(d) Government Securities

(e) I am not attempting the question

Which rate of return accounts for intra-year compounding?   [ 2 Marks ]

(a) Effective

(b) Stated

(c) Both of the above

(d) None of the above

(e) I am not attempting the question

Market Capitalisation is _____________.   [ 2 Marks ]

(a) Value of shares of the company held by Foreign Investors

(b) No. of shares issued by a company multiplied by it's market price

(c) Value of shares held by promoters of the company

(d) Value of shares in the company held by the public

(e) I am not attempting the question

Depositories are like banks for securities.  [ 1 Mark ]

(a) TRUE

(b) FALSE
(c) Dormant Funds

(d) None of the above

(e) I am not attempting the question

Bid' means the _____________.   [ 3 Marks ]

(a) Seller's price

(b) Traded Price

(c) Market price

(d) Buyer's price

(e) I am not attempting the question

The lenders use ______________ ratio to assess debt servicing capacity of a firm.   [ 2 Marks ]

(a) Interest Coverage ratio

(b) Debt-Asset Ratio

(c) Acid-test Ratio

(d) Current Ratio

(e) I am not attempting the question

'Ask' means the ________.   [ 3 Marks ]

(a) Buyer's price

(b) Seller's price

(c) Market price

(d) Traded Price

(e) I am not attempting the question

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