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7

ROLL-813

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OT-13

Net Change in working capital can be only

a source of funds ( True / False)

Major use of funds flow statement is to

detect_____________________

Carrying cost and ordering cost move in

the same direction (True/False)

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P-13

Avon Ltd. has a capital of

Rs. 10,00,000. Its turnover

is 3 times the Capital and

the net profit margin on

sales is 6%. What is thereturn on investment.

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ROLL-814

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OT-14

Credit Policy depends on _____________

Combined Leverage of 3means____________________________

_____________________________

Simple Average Method of stock valuationdoes not reflect _____________________

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P-14

The figures of a company as on 31-3-2008

are:-

Equity: Rs. 400 lacs.

12% debentures. Rs. 400 lacs.

Term Loan(18%) Rs. 1200 lacs.

Calculate the weighted average cost ofcapital (WACC) assuming the co. pays

dividend at 20% p.a.

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ROLL-815

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OT-15

NPV + Depreciation = sum of the present

values of future EVAs ( True / False)

ROE( before Tax) = ROTA +( - )

x Debt/equity ratio

Optimum Cash Level involves trade off

between ________________ and_______________________

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P-15

Earnings per share Rs. 4

Return on investments 18%

Expected returns of shareholders 15%

Find the price per share as per Walter

Model if the payout ratio is 40%

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ROLL-816

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OT-16

CVA is calculated as

____________________________

Under LIFO Method, Gross Profit is

overvalued when price is rising (

True/False)

Stock out cost refers to ____________

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P-16

A firm purchases 2000 units of an item

per year at a unit cost of Rs. 20. The

ordering cost Rs. 50 per order and the

inventory carrying cost is 25%.

Find the optimum order quantity and the

minimum total cost including the

purchase cost.

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ROLL-817

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OT-17

Under LIFO Method, the stock issues are

valued at latest prices / oldest prices(

delete incorrect answer)

There is prescribed format for Funds Flow

Statement (True / False)

WACC after Tax = WACC (before Tax) x

___________

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P-17

A machine is purchased at a cost of Rs.

80000 with a life of 5 year and Rs. 10000

is its scrap value. The expected profits

before depreciation are:-

Year 1 Rs. 20000 Year 2 Rs. 40000

Year 3 Rs. 30000 Year 4 Rs. 15000

Year 5 Rs. 5000

Calculate accounting rate of return.

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ROLL-818

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OT-18

Higher the opportunity cost lesser will be

the frequency of conversion of securities

for cash management ( True / False)

Stringent Credit Policy tends to

_____________

ROTA computation is affected by Income

Tax rate ( True / False)

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P-18

Find the Net present value (NPV)of the following

cash stream if the discount rate is 14%:-

Year 0- Cash Outflow Rs. 5000

Inflows:-

Year 1 Rs. 6000

Year 2 Rs. 8000

Year 3 Rs. 9000Year 4 Rs. 8000

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B -R -EA- K !!