Strategic Finance 5

Strategic Finance

10.

The HHI index reflects :-

a)

Inequality & degree of concentration Transparency Disclosure through public announcement Interest of small shareholders

b) c) d) 11.

In case of direct placement of commercial papers it may be issued for maturities from the date of issue. Bw one to two yrs,More than 2 yrs,less than 6 months,bw 15 days to one year. 18. Changes in the investee`s equity includes those :-

m the

a) revaluation of fixed assets b)From foreign exchange translation differences c)From the adjustment of differences arising on amalgamation d) Investor's proportionate interest 24. Only firms with a large amount of financial slack can afford tender offers. True False 40. In the disclosures in financial statements, there are significant restrictions on :The right of ownership Realisability of investments The remittance of income & proceeds of disposal Other disclosures 44. To determine the firm's value, what is difficult to placing a value on?

Quantitative variables Qualitative factors Quantitative factors Qualitative variables

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Strategic Finance

1. Segment revenue

1. Enterprise assets

2. Segment result 3. Segment assets 4. Segment liabilities

2. 3. 4. 5. 6.

Enterprise revenue Enterprise liabilities Cash flows Enterprise net profit or loss Liquidity

50. When the working capital is less than its peak level :52. Liquidation value is also known as

LIST OF ATTEMPTED QUESTIONS AND ANSWERS (strategic finance)

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Strategic Question Finance

The financial framework of a merger decision covers 3 interrelated aspects i.e. :Correct Answer Determining the firm's value , Financing techniques in mergers , Analysis of merger as a capital budgeting decision Your Answer Determining the firm's value , Financing techniques in mergers , Analysis of merger as a capital budgeting decision

Multiple Choice Single Answer Question According to Net Income Approach, the average cost of capital declines as the leverage ratio :Correct Answer Increases Your Answer

Increases

True/False Question

A long term investment is an investment other than a current investment.

Correct Answer True Your Answer

True

True/False Question

The capital Asset pricing model describes the pricing of assets as well as derivatives. Correct Answer True Your Answer

True

Multiple Choice Multiple Answer Question Personnel services expenses is made up of:Correct Answer Personnel salaries , Cost of facilities , Training & development budgets Your Answer

Cost of facilities , Training & development budgets

Multiple Choice Multiple Answer Question Investments having no physical existence includes :Correct Answer Shares , Debentures , Bonds Your Answer

Shares , Debentures , Bonds

Select The Blank Question the commercial paper may be issued in the multiples of ________. Correct Answer 5 lakhs Your Answer

5 lakhs

Multiple Choice Single Answer Question Modigliani - Miller Theoram3is based on :9212293.doc

Strategic Finance

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