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UGC NET Management Previous Year Solved Papers - July 2018

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91. A firm is currently earning ` 50,000 and it's one share has a present market value of ` 175. It has 5,000 shares outstanding. The earnings of the firm are expected to remain stable and it has a payout ratio of 100%. The cost of equity is:

  • Option : B
  • Explanation :
    Cost of Equity = Reciprocal of P/E Ratio
    = 1/17.5 =5.71%.
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92. With a project cost of Rs.300 lac, profits after depreciation (straight-line method) and tax for its lifetime of 5 years are estimated at Rs.10 lac, Rs.10 lac, Rs.30 las, Rs.40 lac, and Rs.50 lac respectively. The cost of capital is 12% and discount factors @ 12%, for the first five years are 0.89, 0.80, 0.71, 0.64 and 0.57 respectively. The Net present value of project is:

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93. Match the items of List (II) with those of List(I) and choose the correct code of combination.

List (I) 
(Credit Rating Agency)		List (II) (Year of Establishment)
(a) CRISIL(i) 1860
(b) Moody’s Investors Service(ii) 1909
(c) Standard and Poor(iii) 1914
(d) Fitch Ratings(iv) 1987

  • Option : C
  • Explanation : Definition: Credit Rating is the symbolic indication of the current opinion regarding the relative capability of a corporate entity to service its debt obligations in time with reference to the instrument being rated.
    First Credit Rating Agency was the Mercantile Credit Rating Agency, established in 1841 in New York. First rating guide was published by Robert Dun in 1859 and another rating agency was set up by John Bradstreet, which is popularly known as Dun & Bradstreet today. Some of the renowned rating agencies are:
    > Standard & Poor’s
    > Moody’s Investor Service
    > Fitch Rating Agency In India
    > CRISIL (Credit Rating and Information Services (India) Limited) - first in India
    > ICRA Limited (Investment Information and Credit Rating Agency of India Limited)
    > CARE (Credit Analysis and Research Limited)
    Credit Rating AgencyYear of establishment
    (a) Standard & Poor’s1860
    (b) Moody’s Investor Service1909
    (c) Fitch Rating Agency1914
    (d) CRISIL1987
    (e) ICRA1991
    (f) ONICRA1993
    (g) CARE1993
    (h) CIBIL2000
    (i) SMERA2005
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94. Which of the following statements are true? Select the correct code.
(a) WTO rules are mainly applied to trade in goods but other areas such as services, intellectual property, etc., are not covered by them.
(b) GATT had contracting parties, whereas WTO has members.
(c) The dispute settlement system under WTO is much more efficient, speedy and transparent unlike the GATT system which was highly susceptible to blockages.

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95. Which trade group, among the following holds ‘Tamil’ as one of its official languages?

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July 2018