The assets to sales ratio of a firm maintained at $1\mathrm{.}25$ for a considerable amount of time. The current sales of the company is Rs$\mathrm{.}2450$ crores. Next year's sales would increase to Rs$\mathrm{.}2600$ crores. What is the required investment in the additional assets

$*$

Rs$.187\mathrm{.}50$ crores

Rs$.178\mathrm{.}50$ crores

Rs$.250$ crores

Rs$.3062\mathrm{.}50$ crores

Which of the following is not the job of an Investment Banker?

$*$

Establishing Listing Requirements

Private Placement of Debt

LBO Advisory

Asset Management

You are advising on the buy side and estimating that the FCFE of a startup in the $6$th year would Rs$\mathrm{.}800$ crores. This would grow at the rate of $3\%$ forever, with a stable discounting rate of $15\%.$ How much should your client pay for it today, if the first $5$ year period could additionally carry of risk premium of $3\%.$

$*$

Rs$.3872\mathrm{.}85$ Crores

Rs$.3782\mathrm{.}75$ Crores

Rs$.2194\mathrm{.}06$ Crores

Rs$.2914\mathrm{.}06$ Crores

The PAT, Depreciation, CAPEX, and changes in NWC are Rs$\mathrm{.}500$ crores, Rs$\mathrm{.}75$ crores, Rs$\mathrm{.}375$ crores, and Rs$\mathrm{.}100$ crores respectively. Then what is the equity re$-$investment rate with Net Debt Issues equal to $0?$

$*$

$5\%$

$80\%$

$60\%$

$20\%$

Which of the following is a difference between Middle Market and Elite Boutique Investment Bankers?

$*$

Middle Market Investment Bankers offer full range of services to a particular geographical region

Elite Boutique Investment Bankers offer full range of services to a client

Middle Market Investment Bankers act as the middlemen between Full Service and Elite Boutique Investment Bankers

Elite Boutique Investment Bankers offer full range of services to a particular geographical region

If the Enterprise Value of a company, which has debt of Rs$\mathrm{.}300$ crores, is Rs$\mathrm{.}700$ crore, and the equity is valued at Rs$.475$ crores. Then what is the amount of surplus cash in this company?

$*$

Rs$.50$ Crores

Rs$.225$ Crores

Rs$.75$ Crores

Rs$.25$ Crores

Which of the following abuses of commercial banking brought in the Glass$-$Steagall Act $(1933)$

$*$

Helping companies and governments raise funds from the markets

Increasing interest rates on loans and advances due to losses on securities market transactions

Selling securities$,$ which they have underwritten, to their deposit holders

Offering Deposit Insurance to their deposit holders

Which of the following banks was the earliest to commence merchant banking operations in India?

HSBC

ANZ Grindlays Bank

Citi Bank

J P Morgan

Which of the following fee is charged by the Investment Banker for engaging in the contract?

$*$

Scaled Success Fee

Fixed Success Fee

Flat Percentage Success Fee

Retainer Fee

A company's equity share is being sold at $30$ times its current earnings. Its fundamentals reflect $50\%$ payout ratio, and $26\mathrm{.}67\%$ ROE. What is the market's implied discounting rate?

$*$

$11\%$

$15\%$

$26\mathrm{.}67\%$

$20\%$

The NOPAT of a firm is Rs$\mathrm{.}650$ crores. How much of this should the firm re$-$invest so that it can grow at a rate of $8\%,$ when its ROI is going to stabilise at $20\%?$

$*$

Rs$.250$ crores

Rs$.230$ crores

Rs$.500$ crores

Rs$.260$ crores

Which of the following is an Investment Banking Company?

$*$

Venture Capital

Asset Management Company

Underwriters

Private Equity

An analyst estimated the current FCFE of a company to be Rs$\mathrm{.}300$ crores. She is expecting that FCFE will grow at the rate of $5\%,$ perpetually, and assumes $20\%$ discounting rate. How much does she value the equity of this company?

$*$

Rs$.1500$ Crores

Rs$.2000$ Crores

Rs$.1200$ Crores

Rs$.2100$ Crores

An company's EBIT is Rs$\mathrm{.}90$ crores, and it is in a tax bracket of $25\%.$ The future of this company is appearing bright, and it definitely needs Rs$.15$ crores working capital funding. What is the maximum CAPEX that can be invested so that there is no FCFF$?$

$*$

Rs$\mathrm{.}55$ crores before depreciation

Rs$\mathrm{.}56\mathrm{.}25$ crores net of depreciation

Rs$\mathrm{.}52\mathrm{.}5$ crores before depreciation

Rs$.52\mathrm{.}5$ crores net of depreciation