QUIZ- MBA OG

(Each Question is of 10 Marks)- Total Marks 50

Q 1: Initial Outlay- Rs. 5,00,000

CFAT Year 1:

Probability CFAT
0.2 Rs. 90,000
0.6 Rs. 1,20,000
0.2 Rs. 1,60,000

CFAT 2

If CFAT is Rs. 90,000

Probability CFAT
0.3 Rs. 2,00,000
0.4 Rs. 2,50,000
0.3 Rs. 3,00,000

CFAT 2

If CFAT is Rs. 1,20,000

Probability CFAT
0.1 Rs. 4,00,000
0.8 Rs. 1,50,000
0.1 Rs. 2,00,000

CFAT 2

If CFAT is Rs. 1,60,000

Probability CFAT
0.2 Rs. 4,00,000
0.6 Rs. 2,00,000
0.2 Rs. 6,00,000

Discounting Rate is 10%

Decide on acceptance or rejection of project

Q 2: Current Dividend Per Share- Rs. 6 per Share

Duration of Super Normal Growth Period – 6 years

Super Normal Growth rate- 20%

Normal Growth Rate- 8%

Cost of Equity- 12%

Calculate Price of Equity Share

Q 3: Describe the Financial Market and its classification?

Q 4: What is risk? Describe the categories of Risk?

Q 5: Face Value Rs. 1000, Discount 5%, Floatation Cost 3%, Maturity- 5 years, Premium on Redemption
7%, Tax rate 30%, Calculate Cost of Deb