1ST PAPER

S.NO. Answer
1 B Initial Cash flows
2 C 707
3 D Higher
4 1348.69
5 Increase
6 More
7 Working Capital Management
8 270
9 Decrease
10 High Inventory
11 Periodic Return & Capital Appreciation
12 4.21 Return=17.8
13 15454.5
14 Long Term Fund
15 All of the above
16 Increase
17 379080
18 Cash Conversion Cycle
19 Above
20 Pref dividend/Preference share market price
21 9 years
22 Reversal Rate
23 Systematic Risk
24 Initial Cash Flows
25 Annuity due
26 Increase
27 Increase
28 A category
29 0.07
30 IRR
 2nd Paper Bhaiya
S.NO. Answer S.NO. Answer
1 Optimum Utilization of resources 1 Sunk Cost
2 Increase 2
3 Cofficient of variation 3 Terminal Cash Flow
4 Increase,EBIT 4
5 Upward Sloping 5 17.8
6 707 6 Mutually Exclusive Proje
7 9 7
8 Share 8 235
9 4.21 9 Increase
10 IRR 10
11 Systematic Risk 11 Working Capital Manage
12 Payback Period 12
13 Debt 13 379080
14 Decrease 14
15 YTM(1-tax) 15
16 8333 16
17 17.8 17
18 Both of the above 18 Reduce
19 Residual Payout policy 19
20 Low inventory cost 20 707
21 Annuity 21
22 Reduce 22 Long term Fund
23 400000 23
24 Beta 24 Low inventory carrying c
25 NPV 25
26 Facevalue 26 Face Value
27 0.67 27 310450
28 Both 1 & 2 28
29 1075.12 29
30 Reduce 30 Above
Terminal Cash Flow

Mutually Exclusive Projects

Working Capital Management

Long term Fund

Low inventory carrying cost

Face Value
2nd assignment
Ques Ans
1d
2b
3b
4b
5b
6b
7a
8a
9a
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30