Classical

June 2015 - Paper 3

21:  

With respect to collective bargaining match the items in List - I with those in List - II, using the codes at the end of the items.

List – I

List – II

(a) Win – Lose

(i) Winning is everything

(b) Lose – Win

(ii) Nothing for nothing

(c) Lose – Lose

(iii) Everything for everything

(d) Win - Win

(iv) Relationship is paramount

Codes:

A.

(ii) (i) (iii) (iv)

B.

(i) (iv) (ii) (iii)

C.

(i) (ii) (iii) (iv)

D.

(iv) (iii) (ii) (i)

 
 

Option: B

Explanation :


22:   'A fair day's wage for a day's work' is the motto of ___________ conceptualization concerning Trade Union movement.
A.

Karl Marxian notion of class conflict

B.

Socialist pattern of society

C.

American capitalist system

D. Gandhian concept of Trusteeship
 
 

Option: D

Explanation :


23:  

In case where a company is likely to have the supernormal growth for a limited finite period and the normal growth thereafter, the value of the share can be computed as:

ugc net management


ugc net management


ugc net management


ugc net management

Where gs = supernormal growth rate,

n = number of years for supernormal growth rate

gN = normal growth rate, P0 = price of share at time 0,

t = year, D = Dividend, ke = cost of equity

A.

Only (a)

B.

Sum total of (a) and (b)

C.

Sum total of (b) and (c)

D.

Sum total of (c) and (d)

 
 

Option: B

Explanation :


24:  

Select the correct statement/s from the following:

Statement I:

The slope of the NPV profile reflects how sensitive the project is to discount rate changes.

Statement II:

To find total NPV of more than one projects, their NPV cannot be added.

Statement III:

The certainty equivalent coefficient applies adjustments to both, the cash flows (in the numerator) and the discount factor (in the denominator).

Statement IV:

The risk - adjusted discount factor applies adjustment for risk only to the discount factor (denominator).

 

A.

Only statement I is correct

B.

Statements II and III are correct

C.

Statements III and IV are correct

D.

Statements IV and I are correct

 
 

Option: D

Explanation :


25:  

EBIT - EPS indifference point is the level of :

A.

EBIT that produces the same level of EPS for two alternative capital structures.

B.

EBIT that maximizes EPS

C.

EPS that optimizes EBIT

D.

Capital structure that does not affect Kd

 
 

Option: A

Explanation :




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