1. The accompanying information relates to HCL occupied with programming consultancy business as on 31 December 2010

($ Million)

Pay from consultancy 645.00

EBIT 280.00

Less: Interest on Loan 34.00

EBT 142.00

Expense @ 35% 56.70

195.30

Monetary record

($ Million)

Liabilities Amount Assets Amount

Value Stock (20 million offer @ $ 30 each) 100 Land and Building

PCs and Softwares 200

295

Stores and Surplus 525 Current Resources:

Loans 140 Debtors 850

Current Liabilities 380

Bank 500

Cash 70 490

185 985

With the above data and following suspicion you are needed to figure

(a) Economic Worth Added

(b) Market Worth Added. Expecting to be that:

(i) WACC is 15%.

(ii) The portion of organization right now cited at $ 40 each

2. Cost of Capital for Bonds and Debentures is determined on:

(a) Preceding Assessment premise

(b) After Assessment premise

(c) Hazard free Pace of Interest premise

(d) Nothing from what was just mentioned.

3. Weighted Normal Expense of Capital is by and large meant by:

(a) kA

(b) kw

(c) k0

(d) kc

4. Which of the accompanying expense of capital require charge change?

(a) Cost of Value Offers

(b) Cost of Inclination Offers

(c) Cost of Debentures

(d) Cost of Held Profit.

5. Which is the most costly wellspring of assets?

another Value Offers

(b) New Inclination Offers

(c) New Obligations

(d) Held Profit

6. Minimal expense of capital is the expense of:

(a) Extra Deals

(b) Extra Assets

(c) Extra Interests

(d) Nothing from what was just mentioned.

7. In the event that the firm is all-value financed, WACC would be equivalent to

(a) Cost of Obligation

(b) Cost of Value

(c) Not one or the other (a) nor (b)

(d) Both (a) and (b)

8. If there should be an occurrence of incompletely obligation financed firm, k0 is less

(a) Kd

(b) Ke

(c) Both (a) and (b)

(d) Nothing from what was just mentioned

9. To figure Weighted Normal Expense of loads might be founded on:

(a) Market Esteems

(b) Target Esteems

(c) Book Esteems

(d) The entirety of the abovementioned

10. Association's Expense of Capital is the normal expense of:

(a) All sources

(b) All borrowings

(c) Offer capital

(d) Offer Bonds and Debentures