IMT SOLVED ASSIGNMENTS AVAILABLE –FINE005 TEST 1
ASSIGNMENT
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Q1. Unrealized gain or loss arising from foreign exchange rates are
a) Cash flow from operating activity
b) Cash flow from financing activity
c) cash flow from investing activity
d) Not cash flow
Q2. What is the cut-off limit of acquisition of share holding for compulsory announcement of open offer to public by acquirer?
a) 5 percent
b) 15 percent
c) 25 percent
d) 35 percent
Q3. Which is not the category of Return on investment (Rol)
a) return on assets
b) return on capital employed
c) return on turnover
d) return on shareholders’ equity
Q4. In indirect method of calculating Operating Cash Flow, which of the following will be added to Net Profit?
a) Interest paid
b) Interest received
c) Gain on Sale of Asset
d) Rent
Q5. _______involves predicting and estimating future outcomes based on past trends and current actions
a) Financial planning
b) Financial analysis
c) Financial statement
d) Financial forecasting
Q6. Which of the following denotes the firm with ‘High Market Growth Rate and High Market Share’?
a) Dog
b) Cash Cow
c) Star
d) Question Mark
Q7. Difference between operating profits after taxes and total cost of fund is
a) Market value added (MVA)
b) Economic value added (EVA)
c) Financial value added
d) Market value
Q8. Principal revenue generating activities of an enterprises are called as
a) Operating activity
b) Financing activity
c) Investing activity
d) Accounting activity
Q9. Which of the following is not a cash outflow for the firm?
a) depreciation
b) dividend
c) interest paid
d) taxes
Q10. The statement helps in analysing the changes in the working capital position of the firm is
a) Cash flow statement
b) Fund flow statement
c) Financial statement
d) Balance sheet
Q11. A high payout ratio indicates
a) a firm is investing heavily in plant and equipment
b) the firm is probably in the mature phase of its life cycle and does not have many
growth opportunities available
c) a firm has high current obligations
d) the firm is probably in Stage II of its life cycle
Q12. A public offer by one firm to directly buy the shares of another firm is called a
a) Merger
b) Demerger
c) Tender offer
d) Consolidation
Q13. Current ratio is 4:1 Net Working Capital is Rs.30,000. Find the amount of current Assets
a) 6.000
b) 10.000
c) 24.000
d) 40,000
Q14. A merger of firms engaged at different stages of production but in the same industry is called
a) Vertical merger
b) Horizontal merger
c) Reverse merger
d) Conglomerate merger
Q15. In a merger or acquisition, a firm should be acquired if it:
a) is a firm in the same line of business, in which the acquirer has expertise
b) is a firm in a totally different line of business which will diversity the firm
c) generates a positive net present value to the shareholders of an acquiring firm
d) pays a large dividend which will provide cash pass through to the acquiror
Q16. Dividend coverage ratio is
a) EBT/ Preference dividend
b) EAT/Preference dividend
c) EBIT/Preference dividend
d) Preference dividend/EAT
Q17. Merger and amalgamation under the Companies Act requires mandatory sanction by the______
a) National Company Law Tribunal
b) Central Board of Direct taxes
c) Security Exchange Board of India
d) Competion commission of India
Q18. P/E ratio is
a) MPS/EPS
b) EPSIMPS
c) MPS-EPS
d) EPS-MPS
Q19. ___________refers to investments (equity and debt), deployment of funds in fixed and current assets, various other expenses, sales revenues, margins, profits etc
a) Strategy
b) Financial analysis
c) Financial planning
d) Financial forecasting
Q20. Purchase of machinery by means of issue of shares should be_____ from cash flow statement statement.
a) includes
b) excluded
c) not included
d) not excluded
Q21. _____is the acquisition of an enterprise(s) by a person(s) or merger or amalgamation of enterprises.
a) Control
b) Acquisition
c) Coloboration
d) Combinaton
Q22. Declining star also known as
a) wild cats
b) Dogs
c) cash cows
d) stars
Q23. Cash-flow from operation ratio is
a) Cash flow from operation/Current assets
b) Current liabilities/ cash flow from operation
c) Cash flow from operation/current liabilities
d) Cash flow from operation/ CA +CL
Q24. To create a common size income statement______ all items on the income statement by______
a) multiply: net income
b) multiply; total revenue
c) divide total revenue
d) divide: net income
Q25. Which is not the tax concessions to amalgamated company
a) Carry forward and set off of business losses and unabsorbed depreciation
b) bad debts
c) Free of capital gain tax
d) preliminary expenses
Q26. A budget which includes activities relating to the capital expenditure during the budgeted period is
a) Operating budget
b) Capital budget
c) Function budget
d) cash budget
Q27. In a merger the
a) target firm continues to exist as a subsidiary of the acquiring firm
b) legal status of both the acquiring firm and the target firm is terminated
c) acquiring firm retains its name and legal status
d) stockholders of the target firm have little, if any, say as to whether or not the merger
occurs
Q28. …………industries has an equity market capitalisation of Rs. 5,000 lakhs in current year. Assume further that its equity share capital is Rs. 1,500 lakhs and its retained ings are Rs. 900 lakhs. Calculate MVA
a) Rs 3,500 lakhs
b) Rs 4,100 lakhs
c) Rs 2.400 lakhs
d) Rs 2.600 lakhs
Q29. Going-private transactions in which a large percentage of the money used to buy the outstanding stock is borrowed is called a
a) leveraged buyout
b) Tender offer
c) Proxy contest
d) Merger
Q30. __________is used to understand the effect of change in an independent variables on some dependent variable under certain specific conditions?
a) Scenario Analysis
b) Vertical Analysis
c) Sensitivity Analysis
d) Horizontal Analysis