TEAM MEMBERS

1.Sweta singh
Enrollment no.-21BSP1274
2.Abhishek singh
Enrollment no.-21BSP1173
3.Subhasish metya
Enrollment no.-21BSP1264

Supervised by: Prof. Sujoy Kumar Dhar

MULTIPLES CHOICE QUESTIONS
1.Under depository system the allotment and credit of shares to the
beneficiary amount should be completed within how many days from
the date of an issue?
a)15 days
(b) 21 days
(c) 7 days
(d) 14 days
2.Convertible preference shares can be converted to equity shares at
the option of the holder, so these shares are also known as
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.
(a) Conversion of preference shares
(b) Quasi equity shares
(c) fully convertible preference shares
(d) Participating preference shares
3. Which of the following statements is not correct regarding earnings
per share (EPS) maximization as the primary goal of the firm?
a)EPS maximization ignores the firm's risk level.
b)EPS maximization does not specify the timing or duration of
expected EPS.
c)EPS maximization naturally requires all earnings to be retained.
d)EPS maximization is concerned with maximizing net income.
4.How much investment is required to yield an annual income of Rs
420 at 7% p.a. simple interest.
a)6000
b)6420
c)5580
d)5000
(working note)
Given S.I.=420
T=1 year
R=7% p.a.
Let investment (P) be x
P = S.I. x 100
R x T
= 420 x 100
7 x 1
P =6000
5. If the nominal rate of interest is 10% per annum and there is
quarterly compounding, the effective rate of interest will be:

a) 10% per annum

b) 10.10 per annum
c) 10.25%per annum
d) 10.38% per annum