1. Catch22 Ltd had a receivable of Rs.250 crores. This has been securitized but with recourse that Catch 22 will pay if the receivables are defaulted. If the companys equity is Rs.1000 crores and Borrowed liabilities is Rs.1250 crores, the adjusted debt equity ratio of catch22 would be

1.25X

1.00X

1.50X

2. At the end of last year, M had a quick ratio of 1.2. If M reduces its accounts payable with a cash payment of Rs.2 million, its quick ratio will:

be unchanged

increase

decrease

3.

A Co. and B Co., two similar-sized competitors, have had stable operating cycles of 200 days and cash conversion cycles of 170 days over the past several years. B's operating and cash conversion cycles remained at these levels in the most recent year, but A's cash conversion cycle contracted to 120 days while its operating cycle remained at 200 days. Relative to B, A has most likely :

Taking more time to pay its suppliers.

Operating with more inventory on hand

Increasing credit terms to its customers

4.

William, an investor, has the following information for a hypothetical company AFC Ltd.Net Profit Margin = 17% Asset Turnover = 65% Financial Leverage = 1.6, Given that the company had revenue of Rs.150,000 for the year ended, the equity of the company is closest to:

Rs.144230

Rs.12357

Rs.4508