1Consider the following data: Source Market Value Cost (%) Equity 10,00,000 18 Debt 5,00,000 13 14.82%

2

Given the following information about a debenture, the post-tax cost of the debenture using the approximation formula is

Par value = Rs. 100; Coupon rate = 10%

Redemption price = Rs. 102 per debenture

Net amount realized = Rs 98 per debenture

Tax rate = 0.35; Number of years to maturity =

5.5%

8.0%

6.5%

7.5%

7.0%

3

If a loan of Rs. 3,00,000 is to be repaid in 6 annual installments with a coupon rate of 12% p.a. then the equated annual installment will be

Rs. 72,975

Rs. 71,967

Rs. 75,995

4

If the annual cash inflow for a bond is Rs. 200, the present value of the bond, if the inflows continue for 5 years at a required rate of 11%, is

Rs. 939

Rs. 869

Rs. 739

Rs. 839

5

An income stream provides Rs. 2000 for first three years and Rs.3000 for next three years, if interest rate is 14% then the present value of income stream is

Rs. 8650.85

Rs. 9624.25

Rs. 9345.00

Rs. 8860.50

6

A loan of Rs. 5,00,000 is to be repaid in 10 equal annual installments. If the loan carries a rate of interest of 12% p.a, the equated annual installment is

Rs. 95,496

Rs. 75,000

Rs. 88,496

Rs. 1,00,000

Rs. 80,000