Question 1
Section B (2 Mark)
How much should you pay for a share of stock that offers a constant growth rate of 10%, requires a 16% rate of return, and is expected to sell for Rs50 one year from now?
How much should you pay for a share of stock that offers a constant growth rate of 10%, requires a 16% rate of return, and is expected to sell for Rs50 one year from now?
Question 2
Section B (2 Mark)
Amit has just received new information regarding his investment in PLC ltd. The new information appears to be in conflict with earlier forecast of what the stock price should be at this point. He is still willing to incorporate the new information into his forecast and to revise it accordingly.
Which behavioral heuristic is Amit displaying?
Amit has just received new information regarding his investment in PLC ltd. The new information appears to be in conflict with earlier forecast of what the stock price should be at this point. He is still willing to incorporate the new information into his forecast and to revise it accordingly.
Which behavioral heuristic is Amit displaying?
Question 3
Section C (4 Mark)
You have collected the following information regarding Companies C and D:
The two companies have the same total assets.
The two companies have the same operating income (EBIT).
The two companies have the same tax rate.
Company C has a higher debt ratio and a higher interest expense than Company D.
Company C has a lower profit margin than Company D.
Based on this information, which of the following statements is most correct?
You have collected the following information regarding Companies C and D:
The two companies have the same total assets.
The two companies have the same operating income (EBIT).
The two companies have the same tax rate.
Company C has a higher debt ratio and a higher interest expense than Company D.
Company C has a lower profit margin than Company D.
Based on this information, which of the following statements is most correct?
Question 4
Section C (4 Mark)
Read the senario and answer to the question.
Which one of the following statements most accurately describes the risk exposure of the Shankers' portfolio?
Read the senario and answer to the question.
Which one of the following statements most accurately describes the risk exposure of the Shankers' portfolio?
Question 5
Section A (1 Mark)
Which portion of his property can a muslim normally be guest according to muslim personal law?
Which portion of his property can a muslim normally be guest according to muslim personal law?