Final PN-14 SFM Quiz 3

1. The important role while establishing the mutual fund scheme is played by the     

2. If opening units 1,25,000 Units subscribe 2,00,000, Units redeem 50,000 then Closing units?

3. A closed-end fund has a portfolio currently worth Rs.350 million. The fund has liabilities of Rs.5 million and 17 million units outstanding. What is the net asset value of the fund?

4. A 20-year maturity bond with a par value Rs.1,000 makes semi- annual payments at a coupon rate of 8%. The YTM is 9%. How much should you pay for the bond?

5. You just purchased a 10-year maturity, semi-annual coupon bond for Rs.1,148.77 (face value Rs.1,000), a coupon rate of 8% and a yield to maturity 6%. The bond is callable in four years at Rs.1,080. what is the yield to call?

6. A Ltd. has 1 million AAA rated 12% bonds outstanding, maturity in 7 years from now. If the market interest rate is 14%, the price of the bond is (assume FV Rs.100) and coupons are payable annually

7. According to the constant growth model, the next year’s dividend is Rs.2.00, required rate of return is 15% and the growth rate is 10%, the market price would be

8. The current price is Rs.100, the required rate of return is 20% and the dividend paid Rs.3.00 on a share of Rs.10 face value. What is the expected growth rate?

9. A stock with a dividend pay-out ratio of 45%, required rate of return is 15% and a constant growth rate of 10% will have a P/E ratio of    

10. A company with PAT of Rs.40 Lakh, tax rate of 50%, RONW of 100%, reserves of Rs.30 lakh and a par value Rs.5 will have pre-tax EPS of          

11. The current dividend, market price and the annual dividend growth rate of a company are Rs.2.50 per share, Rs.50 per share and 5%, respectively. The capitalization rate of the equity will be

12. By investing in bonds, a trader is subjecting himself to the following risks                

13. Value of the bond depends on                

14. Default risk is nil in

15. Face value of a bond Rs.1,000, coupon rate 6%, Current market price Rs.900. Current Yield?

16. A bond with a face value of Rs.1,000 provides 12% annual return and pays Rs.1,050 at the time of maturity, which is 10 years from now. If the investor required rate of return 13%, at which price should the company issue the bond?

17. Consider a 10 year, 12% coupon bond with a par value of Rs.10,000. Assume that the required yield on this bond is 13%. Find out the value of the bond.

18.                                     bonds refer to the ability of the issuer to pay off a debt obligation prior to its maturity at the option of the issuer of debt.

19.                                   bond is issued at a discount and repaid at face value. No periodic interest is paid.

20. A company’s share is currently traded for Rs.80 per share. It is expected that a dividend of Rs.4 per share after one year will grow at 8% indefinitely. What is the expected return?

21. MN Limited is expected to grow at the rate of 8% per annum, which currently pays Rs.10 as dividend. For investments at this risk level, investor requires a return of 15% a year, what is the estimated value of the stock?

22. If ROA is 0.195 and the leverage factor of 1.38, the ROE of the company is             .

23. In the bull market    

24. A company has an ROE of 0.24 and book value of Rs.25.38. the EPS for this company is        .

25. The stock price in the stock market