Question 14:- Which of the following is a technique for monitoring the status of the receivables?

a) Outstanding creditors

b) Ageing Schedule

c) Selection matrix

d) Funds flow analysis

Question 15:- If the required rate of return in Excel Ltd.`s shares is 16%, risk free rate of return is 8%, and the rate of return on market portfolio is 11%, what is the `beta` of the stock? a) 3.67

b) 1.67

c) 2.67

d) 0.67

Question 16:- The Inventory turnover ratio A ltd. is 5 times and that of B Ltd. is 4 times then which of the given statement is incorrect?

a) A Ltd. is functioning better than B Ltd. in terms of converting its stock in to sales

b) B Ltd. is functioning better than A Ltd. in terms of converting its stock in to sales

c) Both A Ltd. and B Ltd. Are equally good

d) None of the above

Question 17:- Which of the following is a/ are Capital market instrument(s):

a) Treasury bill

b) Commercial papers

c) Debentures

d) Both A & B

Question 18:- Which of the following is a source of short -term finance?

a) Equity shares

b) Debentures

c) Treasury bills

d) None of the above

Question 19:- The following information is available for Best and Co. : EBIT Rs 20,20,000 ; Profit before tax Rs 13,20,000 ; Fixed costs Rs 7,00,000. The percentage change in EPS is ................, if the sales are expected to increase by 5%.?

a) 11.25%

b) 10.25%

c) 12.27%

d) 13.25%

Question 20:- The market value of equity and debt is Rs 10,00,000 and Rs 5,00,000 respectively. The cost of equity is 18% and that of debt is 13%. If the tax rate is 35%, the weighted average cost of funds taking market value as weighted is

a) 13.68%

b) 12.24%

c) 14.32%

d) 14%