McqMate
Chapters
| 1. |
Shares are to be valued on ___________. |
| A. | Mergers |
| B. | Sale of shares |
| C. | Gift tax |
| D. | All of the above |
| Answer» D. All of the above | |
| 2. |
Quoted shares are those shares which are ___________. |
| A. | listed on the stock exchange |
| B. | quoted daily |
| C. | quoted by the seller |
| D. | quoted by the buyer |
| Answer» A. listed on the stock exchange | |
| 3. |
Under net asset method, value of a share depends on ___________. |
| A. | net assets available to equity shareholders |
| B. | net assets available to debentures holders |
| C. | net assets available to preference shareholders |
| D. | none of the above |
| Answer» A. net assets available to equity shareholders | |
| 4. |
Net asset value is also called as ___________. |
| A. | asset backing value |
| B. | intrinsic value |
| C. | liquidation value |
| D. | (a), (b) and (c) |
| Answer» D. (a), (b) and (c) | |
| 5. |
While deciding net asset value, fictitious assets ___________. |
| A. | should be considered |
| B. | should not be considered |
| C. | added to total assets |
| D. | none of the above |
| Answer» B. should not be considered | |
| 6. |
Net asset value method is based on the assumption that the company is ___________. |
| A. | a going concern |
| B. | going to be liquidated. |
| C. | A & B both |
| D. | none of the above |
| Answer» B. going to be liquidated. | |
| 7. |
Yield value depends on ___________. |
| A. | future maintainable profit |
| B. | paid-up equity capital |
| C. | normal rate of return |
| D. | none of the above |
| Answer» D. none of the above | |
| 8. |
F.M.P. for yield valuation is ___________. |
| A. | future profit |
| B. | profit that would be available to equity shareholders |
| C. | past profit |
| D. | none of the above |
| Answer» B. profit that would be available to equity shareholders | |
| 9. |
Fair value of a share is equal to ___________. |
| A. | Intrinsic value only |
| B. | Yield value only |
| C. | Average of intrinsic and yield value |
| D. | None of the above |
| Answer» C. Average of intrinsic and yield value | |
| 10. |
Value of a partly paid equity share is equal to ___________. |
| A. | Value of fully paid share - calls unpaid per share |
| B. | Calls in arrears per share |
| C. | Paid-up value per share |
| D. | None of the above |
| Answer» A. Value of fully paid share - calls unpaid per share | |
| 11. |
Investments are ………………. assets. |
| A. | Non trading |
| B. | Current |
| C. | Fixed assets |
| D. | Fictious |
| Answer» A. Non trading | |
| 12. |
………………………….. value depends on Net assets. |
| A. | Yield value |
| B. | Fair value |
| C. | Intrinsic value |
| D. | none |
| Answer» C. Intrinsic value | |
| 13. |
Yield value depends on………………………. |
| A. | Net profit |
| B. | Gross profits |
| C. | Operating profits |
| D. | Losses |
| Answer» A. Net profit | |
| 14. |
Fair value is the ……………… of intrinsic value and yield value. |
| A. | Average |
| B. | Total |
| C. | Net |
| D. | Difference |
| Answer» A. Average | |
| 15. |
EPS depends on net profit available to………………. Shareholders. |
| A. | Equity |
| B. | Preference |
| C. | Debenture |
| D. | Both A and B |
| Answer» A. Equity | |
| 16. |
F.M.P. stands for ………………… |
| A. | Firm maintainable profits |
| B. | Future maintainable profits |
| C. | False maintainable profits |
| D. | Foreign maintainable profits. |
| Answer» B. Future maintainable profits | |
| 17. |
P/E ratio is a relationship between……………….. and …………… |
| A. | MP/ EPS |
| B. | NP/EPS |
| C. | GP/ EPS |
| D. | LOSS/EPS |
| Answer» A. MP/ EPS | |
| 18. |
Intrinsic Value Method is also called as……………….. |
| A. | Yield method |
| B. | Fair value method |
| C. | Asset Backing method |
| D. | none |
| Answer» C. Asset Backing method | |
| 19. |
Yield value is based on the assumption that ………………. |
| A. | Revenue realisation |
| B. | Going concern |
| C. | Prudence |
| D. | Cost concept |
| Answer» B. Going concern | |
| 20. |
NRR stands for ………………………………. |
| A. | Normal rate of return |
| B. | Non resident |
| C. | Natural rate of return |
| D. | Nil rate of return |
| Answer» A. Normal rate of return | |
| 21. |
Goodwill is paid for obtaining __________. |
| A. | Future benefit |
| B. | Present benefit |
| C. | Past benefit |
| D. | None of the above |
| Answer» A. Future benefit | |
| 22. |
The company earns a net profit of 24,000 with a capital of1,20,000. The NRR is 10%. Under capitalisation of super profit, goodwill will be ___________. |
| A. | 1,20,000 |
| B. | 70,000 |
| C. | 12,000 |
| D. | 24,000 |
| Answer» A. 1,20,000 | |
| 23. |
Gross assets are 1,01,000, fictitious assets 350 are included in the gross assets. External liabilities are 7,500. 6% preference share capital is 45,000. Equity capital is 4,500 equity shares of 10 each fully paid. Average expected profit is 8,500. Transfer to reserves is 10% preference dividend is payable. NRR is 9%. The Net Asset Value Per share is ___________. |
| A. | 11 |
| B. | 10.70 |
| C. | 15 |
| D. | 20 |
| Answer» B. 10.70 | |
| 24. |
Fair value is not the average of intrinsic value and yield value. |
| A. | True |
| B. | False |
| C. | none |
| D. | none |
| Answer» B. False | |
| 25. |
In net Assets method all liabilities are consider. |
| A. | True |
| B. | False |
| C. | none |
| D. | none |
| Answer» B. False | |
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