Section B (2 Mark)
In _____________ first the cost incurred by the supplier of property is determined. An appropriate cost plus mark-up is then added to the cost so as to arrive at an appropriate profit in the light of the functions performed and market conditions.

A. Comparable Uncontrolled Price Method [CUP]

B. Resale Price Method [RPM]

C. Cost-Plus Method [CPM]

D. Profit Split Method [PSM]

Section A (1 Mark)
Fundamental Analysis of security valuation includes …………

A. Selecting stock on the basis of EPS

B. Selecting stock on the basis of book value

C. Selecting stock on the basis of market value

D. All of the above

Section A (1 Mark)
In which of the following is the loss unlimited?

A. Long call

B. Long put

C. Short call

D. Short put and Short call

Section C (4 Mark)
A share pays nil dividend and its current market price is Rs.100. The possible selling prices at the end of a year and the probabilities are:



What is the expected rate of return at the end of the year?

A. 8%

B. 12%

C. 10%

D. 9.50%

Section C (4 Mark)
KB, a household product manufacturer, reported earnings per share of Rs3.20 in 1993, and paid dividends per share of Rs1.70 in that year. The firm reported depreciation of Rs315 million in 1993, and capital expenditures of Rs475 million. (There were 160 million shares outstanding, trading at Rs51 per share.) This ratio of capital expenditures to depreciation is expected to be maintained in the long term. The working capital needs are negligible. KB had debt outstanding of Rs1.6 billion, and intends to maintain its current financing mix (of debt and equity) to finance future investment needs. The firm is in steady state and earnings are expected to grow 7% a year. The stock had a beta of 1.05. (The Risk Free Rate is 6.25%.)
Estimate the value per share, using the FCFE Model.

A. Rs 41.45

B. Rs 55.36

C. Rs 50.20

D. Rs 61.75

Section A (1 Mark)
Who would get the first preference when the property of a deceased person is to be distributed?

A. Government

B. Charitable societies

C. Agnates

D. Cognates

Section A (1 Mark)
Which of the following comes at the high end of product margin in the value added pyramid of wealth management?

A. Cash management

B. Concierge

C. Bespoke structured products

D. Fund of funds selection

Section A (1 Mark)
Manish started investing in a savings scheme by depositing Rs. 30,000/-. He plans to increase his contribution every year by Rs. 2,000/-. If rate of interest offered in this scheme is 8 % per annum calculate the amount Manish will get on maturity of this scheme after 15 years?

A. 1212233.34

B. 1118366.26

C. C1084392.87

D. 1092348.34

Section B (2 Mark)
As per Double Taxation Avoidance Agreement, the Technical Fees in UK is charged at:

A. 22.5

B. 15

C. 30

D. Nil

Section A (1 Mark)
The _______ is typically taken to be the risk-free rate.

A. Savings account

B. Certificate of deposit

C. Treasury bill

D. Treasury bond

Section A (1 Mark)
If a female dies without leaving any issue them property inherited from her father or mother the property will devolve upon

A. Heirs of her father

B. Heirs of her mother

C. Heirs of her husband

D. Heirs of her father in law

Section A (1 Mark)
Essential requirement for the person who can attest the will is that he

A. Must be a relative

B. Must be one of the beneficiaries

C. Must witness the testator executing the will

D. Must be lawyer