Strategic Finance

10. The HHI index reflects :-

a) Inequality & degree of concentration

b) Transparency
Disclosure through public announcement
c)
Interest of small shareholders
d)
11. In case of direct placement of commercial papers it may be issued for maturities from the
date of issue.
Bw one to two yrs,More than 2 yrs,less than 6 months,bw 15 days to one year.

18.
Changes in the investee`s equity includes those :-

m the a) revaluation of fixed assets

b)From foreign exchange translation differences
c)From the adjustment of differences arising on
amalgamation
d) Investor's proportionate interest

24.
Only firms with a large amount of financial slack can afford tender offers.
True
False
40.
In the disclosures in financial statements, there are significant restrictions on :-
The right of ownership
Realisability of investments
The remittance of income & proceeds of disposal
Other disclosures
44.
To determine the firm's value, what is difficult to placing a value on?

Quantitative variables
Qualitative factors
Quantitative factors
Qualitative variables

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Strategic Finance

1. Segment revenue 1. Enterprise assets

2. Segment result 2. Enterprise revenue

3. Segment assets 3. Enterprise liabilities
4. Segment liabilities 4. Cash flows
5. Enterprise net profit or loss
6. Liquidity

50.
When the working capital is less than its peak level :-

52.
Liquidation value is also known as

LIST OF ATTEMPTED QUESTIONS AND ANSWERS (strategic finance)

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Strategic Question
Finance The financial framework of a merger decision covers 3 interrelated
aspects i.e. :-
Correct Answer Determining the firm's value , Financing techniques in mergers , Analysis
of merger as a capital budgeting decision
Your Answer Determining the firm's value , Financing techniques in mergers , Analysis
of merger as a capital budgeting decision

Multiple Choice Single Answer

Question According to Net Income Approach, the average cost of capital declines
as the leverage ratio :-
Correct Answer Increases
Your Answer Increases

True/False
Question A long term investment is an investment other than a current investment.
Correct Answer True
Your Answer True

True/False
Question The capital Asset pricing model describes the pricing of assets as well
as derivatives.
Correct Answer True
Your Answer True

Multiple Choice Multiple Answer

Question Personnel services expenses is made up of:-
Correct Answer Personnel salaries , Cost of facilities , Training & development budgets
Your Answer Cost of facilities , Training & development budgets

Multiple Choice Multiple Answer

Question Investments having no physical existence includes :-
Correct Answer Shares , Debentures , Bonds
Your Answer Shares , Debentures , Bonds

Select The Blank

Question the commercial paper may be issued in the multiples of ________.
Correct Answer 5 lakhs
Your Answer 5 lakhs

Multiple Choice Single Answer

Question
9212293.doc Modigliani - Miller Theoram3is based on :-
Strategic Finance

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