1.Equity of Panda Ltd. is $ 500 Crores, its obligation, is valued at $ 290 Crores. Printer Division

portions esteem is inferable from 64%, which has an Asset Beta (p) of 1.55, balance esteem

is applied on Spares and Consumables Division, which has an Asset Beta (sc) of 1.70

ABCL Debt beta (D) is 0.98.

You are needed to ascertain:

(I) Equity Beta (E),

(ii) Ascertain Equity Beta (E), if Panda Ltd chooses to change its Debt Equity position by

raising further obligation and repurchasing of value to have its Debt to Equity Ratio at 1.50.

Accept that the current Debt Beta (D1) is 0.95 and any further supports raised by way

of Debt will have a Beta (D2) of 0.90.

(iii) Whether the new Equity Beta (E) legitimizes expansion in the estimation of value on account of influence

2. The principle objective of giving devaluation is

a) To ascertain genuine benefit b) to show the genuine monetary position c) to lessen taxation rate

d) to give asset to substitution of resources.

3. Under reducing balance strategy, deterioration is determined on

a) Original expense b) recorded worth c) piece esteem d) market esteem

4. Misfortune at a bargain of hardware ought to be discounted against

a) Security premium b) deals account c) devaluation store account d) none of these

5. Misfortune discounted of resource is

a) Debited to resource account b) charged to money account c) credited to resource account

d) charged to benefit and misfortune account.

6. Deterioration emerges on account of

a) Fall in market estimation of resource b) mileage c) downturn d) none of these.

7. At the point when arrangement for deterioration account is kept up, the measure of devaluation is charged to

a) Asset account b) deterioration account c) arrangement for devaluation account d) none of these.

8. In the event that unique expense of a resource is $60000 and its piece esteem is $10000, its depreciable expense is

a) 70000 b) 50000 c) 60000 d) none of these.

9. Under lessening balance technique,

A) The pace of devaluation falls each year b) the sum on which expostulation is determined falls each year

c) the rate just as measure of deterioration falls each year.

D) the rate just as measure of devaluation stays steady.

10. The term 'exhaustion' applies to diminish in estimation of

a) Tangible resource b) immaterial resource c) squandering resource d) current resource.