Q1. M/s. Micro strong has borrowed huge sums and has a debt of Rs. 500 crores.

The interest payable on this

is at 9% p.a. Calculate the Interest Coverage Ratio if the expected EBIT is Rs. 65 crores.
a) 2.19x
b) 1.44x
c) 2.84x
d) 1.02x

Q2. Silverstone Company has a very good financial position. However, due to weak economic conditions, it has
experienced a fall in profits. Considering this scenario, which of the below statements is TRUE?
a) As the profit has fallen due to external factors, it does not indicate any major WEAKNESS as per SWOT
analysis
b) The fall in profits should be considered as an OPPORTUNITY as per SWOT analysis as the company can
grow faster from here-on
c) The fall in profits should be considered as a THREAT as per SWOT analysis as it is a warning for the future
financial stability for the company
d) The fall in profits should be considered as a WEAKNESS of the company as per SWOT analysis

Q3. Identify which statement(s) is/are true about CAGR.

a) CAGR is calculated as the sum of annual returns over the holding period
b) CAGR does not take into account the timings of cash flows into account
c) CAGR means Compounded Annual Growth Rate
d) All the above are true

Q4. Why are most businesses price takers and not price makers?
a) Because the margin on sales is less
b) Because they have low bargaining power with their suppliers
c) Because products have to be priced as per the competition in market
d) Because of low manufacturing cost

Q5. What is the minimum time gap between relisting and delisting of a company in case of voluntary delisting?
a) 3 years
b) 5 years
c) 7.5 years
d) 10 years

Q6. Identify the factors likely to have most influence in the movement of commodity prices in the near term?
a) Inventory Cycle
b) Economic Cycle
c) Monetary Cycle
d) Secular Trend

Q7. Which of the following is / are included under Unpublished Price Sensitive Information (UPSI)?
a) Merger between two or more companies
b) Dividends
c) Changes in key managerial employees
d) All of the above

Q8. How are Corporate actions regulated?

a) Corporate actions are regulated by SEBI regulations
b) Corporate actions are regulated by the listing agreement between the companies and Stock exchanges
c) Corporate actions are regulated by the provisions of Companies Act
d) All of the above

Q9. What helps companies create value proposition for their customers?
a) Differentiating its products in terms of functionality
b) Differentiating its products in terms of quality
c) Both of the above

Q10. What can be easily calculated if a company's Total Assets and Total Debts are known?
a) Depreciation on assets
b) Inventory as on Balance sheet day
c) Total Equity
d) Return on assets

Q11. The EBIT % of a business is 50% with EBIT levels of Rs. 600000. The Net Profit margin of this company is
25%. No. of shares outstanding are 50000. The Retention Ratio is 50%. Calculate the Dividend Per Share.
a) Rs. 1.50
b) Rs. 3
c) Rs. 4
d) Rs. 5

Q12. The share price of a company is Rs. 35 and currently it has 10 million shares trading. The company has
assets worth Rs. 120 million and liabilities worth Rs. 40 million. Calculate the Price to Book Ratio.
a) 5.63x
b) 4.37x
c) 5.99x
d) 3.84x

Q13. Identify the statement which exactly describes passive investing?

a) Passive Investing means investing in alternate asset classes like Real Estate, Bitcoins, Art etc.
b) Passive Investing means investing in broad set of securities that represent an asset class
c) Passive Investing means buying and holding some good equity shares for the long term
d) Passive Investing means investing in matured businesses which are not affected by market volatility

Q14. As per the SEBI standards of corporate governance, independent directors should constitute at least ____
of the board if the chairman is a NON EXECUTIVE director.
a) At least 33%
b) At least 50%
c) At least 25%
d) At least 60%

Q15. An investor bought 100 shares of a company of face value of Rs. 2 at Rs 10,000. Calculate the dividend
yield on the value invested in these shares if the company declares 300% dividend.
a) 3%
b) 6%
c) 1.75%
d) 5.5%

Q16. ____ as an asset generally generates only one time cash inflow.
a) Equity
b) Bond
c) Gold
d) Both Equity and Bonds

Q17. Identify the industry which is most likely in its pioneering stage?
a) Smart Phones
b) Financial Services
c) Block Chain Technology
d) Food and Hotel

Q18. When a foreign investor invests in the existing financial instruments of a country, this is known as ____.
a) Foreign Financial Participation
b) Foreign Direct investment
c) Foreign Portfolio Investment
d) Foreign Aid

Q19. Which of these is used as the discount rate while calculating the Free Cash Flow to Equity?
a) Cost of Equity
b) Cost of Debt
c) Risk Free Rate
d) Weighted average cost of capital

Q20. A ____ is potentially obligated to sell an asset at a predetermined price.

a) Put Buyer
b) Put Writer
c) Call Buyer
d) Call Writer

Q21. Beta of a stock which is more volatile than market is likely to be ____.
a) Below zero
b) Between zero and one
c) Exactly zero
d) Greater than one

Q22. ____ will count as a strength in SWOT analysis.

a) Growing economy
b) Falling interest rates
c) Strong financial position of the company
d) All of the above

Q23. Identify which of these are competing technology for digital cameras?
a) Smart Phones
b) E-Commerce
c) Laptop computers
d) OTT Platforms

Q24. The Department of ____ administers government policies relating to public sector banks, life and general
insurance and pension reforms.
a) The Department of Revenue
b) The Department of Expenditure
c) The Department of Economic Affairs
d) The Department of Financial Services

Q25. The formula for calculating Growth adjusted Price to Earnings ratio (PEG Ratio) is ____.
a) [Current price of stock x Earnings Per Share] / Growth rate
b) [Current price of stock / Earnings Per Share] x Growth rate
c) [Current price of stock / Earnings Per Share] / Growth rate
d) Market price X Number of outstanding shares

Q26. State whether true or false? – If imports are more than exports, then the country will have a capital
account deficit.
a) True
b) False

Q27. From the four funds mentioned below, which of these has the highest uncertainty in terms of returns?
a) Public Provident Funds
b) Mutual Funds
c) Venture Capital Funds
d) Pension Funds
Q28. The Paid up capital of a company is Rs 5,00,000 with face value of Rs 10 per share. The book value per
share is Rs 20 and the Dividend per share of the business is Rs 5. What is the Return on Capital Employed in
the business?
a) 25%
b) 20%
c) 50%
d) 33.33%

Q29. The umbrella market in India is dominated by three major players who have a combined revenue of Rs.
1500 crores. It is estimated that other players contribute to 40% of the market share. Calculate the total market
size of the umbrella market in India?
a) Rs. 1020 crores
b) Rs. 3500 crores
c) Rs. 2100 crores
d) Rs. 2500 crores

Q30. In technical analysis terminology, the price at which the stock peaks is called as _____.
a) Year high
b) Support
c) Resistance
d) Week high

Q31. Code of ethics for a Research Analyst does NOT include ____.
a) Non Compliance
b) Honesty and fairness
c) Insider Trading or front running
d) Confidentiality

Q32. A bond with face value Rs 5000 has a coupon rate of 10%. The expected rate of return is also 10%. The
value for this bond will be ____.
a) Greater than face value
b) Less than face value
c) Equal to face value
d) None of the above

Q33. A company has 25000 shares. The Price to Book Value ratio of this company is 12 and the Book Value is
9. Calculate the Net worth of the company.
a) Rs 2700000
b) Rs 450000
c) Rs 225000
d) Rs 386000

Q34. In which of the below mentioned options do you see Inflation Risk?
a) The currency is depreciating faster than bank interest rates
b) The investments are earning less than the inflation rate
c) Money received on an investment may be worth more when adjusted for inflation
d) The inflation rate is less than the return on investments

Q35. Corporate Governance basically takes into account the efficiency aspect of the management – State True
or False?
a) True
b) False

Q36. The risk of a company unable to honour its debt obligation is known as ____.
a) Liquidity Risk
b) Call Risk
c) Business Risk
d) Credit Risk

Q37. As per the Boston Consulting Group (BCG) Analysis, Tata Nano can be considered as an example of a
Question Mark, which succeeded – State True or False?
a) False
b) True

Q38. What is/are the important quality(ies) one must look out for in a good money manager?
a) Philosophy of life
b) Performance track record
c) Qualification
d) Both 2 and 3

Q39. The Current Ratio of a company is 2.5 and the Quick Ratio is 1.5. The total current assets are Rs
1,00,000. Calculate the Inventory of this company?
a) Rs 25000
b) Rs 40000
c) Rs 150000
d) Rs 250000

Q40. Inflation risk is a Systematic Risk – State True or False?

a) True
b) False

Q41. The focus area(s) for an analyst while analyzing an Economy would be ____.
a) Changes in various macro-economic factors like National income, Inflation, Interest rate and Unemployment
rate
b) Flows from Foreign Direct Investment (FDI) and Foreign Portfolio Investors (FPIs)
c) Savings and investment patterns
d) All of the above

Q42. When a dividend is declared during the financial year, its called as ____.
a) Mid Year Dividend
b) Final Dividend
c) Interim Dividend
d) Stock Dividend

Q43. The important provision(s) of Securities and Exchange Board of India (Research Analyst) Regulations,
2014 with respect to the requirements to foster objectivity and transparency in security research and provide
investors with more reliable and useful information to make investment decisions is/are –
a) Qualification and certification requirement for Research Analyst
b) Application for grant of certificate for Research Analyst
c) Capital adequacy for Research Analyst
d) All of the above

Q44. In the research of an economy, a Research Analyst would consider which of the following:
a) International Trade, Exchange Rate and Trade Deficit
b) Monetary Policies and their Impact on Economy
c) Flows from Foreign Direct Investment (FDI)
d) All of the above

Q45. Most of the businesses are price takers and not price makers, Why?
a) As the margin on sales is low
b) As there is stiff competition and one has to match the competitors prices
c) As customers have low purchasing powers
d) All of the above
Q46. Which of the following options is NOT true with respect to Equity Capital?
a) Equity shareholders get voting rights
b) The company has no obligation to pay any dividend
c) The Equity shareholders have the first right of claim on the company's assets in case of liquidation
d) Equity is perpetual

Q47. An industry which has High barriers to entry, Weak buyers’ bargaining power, Few substitutes and Low
competition would have ____.
a) Low pricing power and High profit margins
b) Strong pricing power and High profit margins
c) Low pricing power and Low profit margins
d) Strong pricing power and Low profit margins

Q48. ____ is always issued at a discount.

a) Amortization Bonds
b) Puttable bond
c) Callable bond
d) Zero-Coupon Bond

Q49. Stock Split results in which of the following?

a) It leads to a boost in the liquidity of shares
b) It leads to division of shares into multiple shares
c) It leads to increase in the wealth of shareholders
d) Both 1 and 2

Q50. The method of analyzing industries by looking at the industry structure, its conduct and its performance is
known as ____.
a) DELTA analysis
b) PESTLE analysis
c) BCG Analysis
d) SCP Analysis