Question
1.Your bank's London office has excess assets to the degree of USD 968491.528/ - for a time of 8 months. The expense of the assets
1.Your bank's London office has excess assets to the degree of USD 968491.528/ - for a
time of 8 months. The expense of the assets to the bank is 14.54% p.a. It proposes
to put these assets in London, New York or Frankfurt and acquire the best
yield, with no trade hazard to the bank. The accompanying paces of interest
are accessible at the three communities for speculation of homegrown assets there at for
a time of 3 months.
London 15.5 % p.a.
New York 18.98 % p.a.
Frankfurt 17.23 % p.a.
The market rates in London for US dollars and Euro are as under:
London on New York
Spot 1.5415/5962
multi month 1514.25/1896.84
multi month 3416.96/3556.25
3 months 8015.26/8514.52
London on Frankfurt
Spot 7.8487/7.9681
multi month 60/55
multi month 95/90
multi month 145/140
At which focus, will be venture be made and what will be the net addition (to the
closest pound) to the bank on the contributed reserves?
2.Closing cost is:
a. Leaveable fixed expense
b. Unleaveable fixed expense
c. Leaveable Variable expense
d. Unleaveable variable expense.
3.Profit volume proportion can be improved by:
a. Diminishing variable expense
b. Diminishing the selling cost
c. Expanding the fixed expense
d. Expanding the key factor
4.Profit volume proportion can$t be determined by utilizing:
a. Benefit/volume of deals
b. Benefit/volume of expenses
c. Changes in benefit/changes in deals
d. Changes in benefit/changes in commitment
5.Fixed expense Rs.50,000, Profit Rs.30,000, cost of products sold Rs.170,000, what is PV proportion?
a. 25%
b. half
c. 20%
d. 40%
6.Cost of capital is the - pace of return expected by the financial backers.
a. Most extreme
b. Normal
c. Least
d. Zero
7.In connection to cost of capital, k = r0 + - + -
a. p,d
b. b,f
c. e, p
d. Any of the abovementioned.
8.According to conventional methodology cost of capital is affected by -
a. Obligation value blend
b. Profit
c. EBIT
d. EAT
9.- - is the chance expense of profit inevitable by the investors.
a. Cost of value
b. Cost of held profit
c. Cost of obligation
d. Cost of inclination shares.
10.Which of coming up next is/are the technique for computing cost of value?
a. Profit yield technique
b. Acquiring yield strategy
c. Acknowledged yield technique
d. These.
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