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Lankabangla Securities LTD: Written Test For The Position of "Research Associate"
Lankabangla Securities LTD: Written Test For The Position of "Research Associate"
Topics
:
:
:
:
Allocated Mark
Macro Economy
Industry Specific
Stock Market
Financial Statement Analysis
(Mandatory)
Mark Obtained
66
45
39
20
Attention:
Short and specific answers are encouraged. Most of the questions designed
are answerable within two to three lines except question number 46 and 47.
So be as brief as possible.
Macro Economy
1. In last few years, foreign exchange reserve increased significantly. What factors worked behind this
enhancement? (Mark: 5)
2. Write down the treasury bills and bonds name of different tenures that are currently available in
Bangladesh:
(Mark: 2.5)
3. What was the total size of remittance sent by the migrants in FY 2014-15? (Mark: 1.5)
4. Suppose ABC Asset Management, a USA based frontier market fund invests in Bangladesh. Now
ABC generates 10% return in DGEN in 2014, and Dollar depreciates against BDT by 9% in that year.
What is ABCs return in 2014 in terms of USD? (Mark: 2.5)
5. What is your expectation regarding Treasury bill and bond rates in fiscal year 2014-15? (Mark: 2.5)
6. Please justify the statement-Government can keep pushing money into the market and keep stock
prices up forever.
(Mark: 5)
8. Please describe the cycle of money supply growth, inflation and expected stock market movement.
(Mark: 5)
9. What is the probable situation of price level in economy if actual output of economy is higher than
potential output? (Mark: 2.5)
10. Say X is an exporter and BDT appreciates against USD. What will be the impact on his business?
(Mark: 2.5)
11. What will be the probable impact on current account balance if BDT depreciates? (Mark: 2.5)
12. If Bangladesh Bank (BB) thinks economy is too much heated, what are the measures BB can take to
tame the economy? (Mark: 5)
13. Give five most important selling points for Bangladesh equity market? (Mark: 5)
Industry Specific
16. Write three differences between banks and NBFIs. (Mark: 2.5)
17. What are the key revenue sources of banks? (Mark: 2.5)
19. What are the indicators need to be considered before investing in banks? (Mark: 2.5)
20. What is CRR and SLR ratio for private commercial banks? (Mark: 2.5)
21. Recently, liquidity in private commercial banks increased significantly. How do you explain this
situation? (Mark: 5)
22. What are the factors should you consider in projecting sales growth of a cement company? (Mark:
5)
24. What was the pharmaceutical industry growth in 2013 (Approximate)? (Mark: 2.5)
25. How do you think falling oil price will impact corporate profitability? (Mark: 2.5)
26. Define Subsidy in Power Sector. Do you think subsidy creates efficiency or inefficiency? Show
rationality of your answer. (Mark: 5)
27. Currently mutual funds are trading at 40% to 50% discount to their NAV. What sort of opportunity
do you see here? (Mark: 5)
28. What sort of a company will you buy to en-cash the increasing purchase power of people of
Bangladesh? (Mark: 5)
29. What do you believe to be the growth driver in future for telecom industry?(Mark: 3)
30. Company A is highly levered and company B is uses low level of leverage. In a falling interest
environment which company will show higher profit growth? (Mark: 3)
Stock Market
31. How many Banks, NBFIs and Mutual fund are listed in Dhaka Stock Market? (Mark: 1.5)
32. What is the current index level of DSEX (7th July 2013)? (Mark: 1.5)
33. Name top 5 five large cap companies? (Mark: 1.5)
35. How many companies are listed in Dhaka Stock Exchange? (Mark: 1.5)
36. Please determine which company is relatively undervalued: (Justify) (Mark: 2.5)
Company
A
B
P/E
25
17
37. For example, there are five companies listed in banking sector. Here we provided P/E and Market
capitalization data of respective companies. Please calculate sector P/E: (Mark: 2.5)
Company
P/E
A
B
C
D
E
15
12
13
7
9
38. What are the categories of shares available in DSE? (Mark: 2.5)
39. Why does a share trade in Z category? (Mark: 2.5)
40. What was the highest point of DGEN (approximate)? (Mark: 1.5)
41. Do you expect further correction in Dhaka stock market in 2013 like 2011 and 2012? Please give
your justification. (Mark: 5)
42. Here, we have marked 9 spots in following technical charts. Now its your turn to explain what was
the buyers and sellers interaction in selected spots: (Mark: 10)
8
1
6
2
9
4
2012
2013 E
Net turnover
19798.1
20029.1
21831.8
-11907.8
-11616.9
-12662.4
Gross profit
7890.3
8412.2
9169.3
4615.5
5057.4
5512.6
Other income
419.6
445.7
415.3
Financial expenses
-464.6
-264.4
-201.9
4570.6
5238.7
5726
4350.1
4989.2
5453.4
3125
3672.1
4131.1
495
519.8
571.8
3620.1
4191.8
4702.9
2012
2013 E
Non-current assets
16128.1
18662.1
20863.2
9171.8
11194.8
11998
Capital Work-in-Progress
1274.4
1401.8
2242.9
167.7
174.5
180.4
4709.1
5166.5
5681.1
805.1
724.5
760.8
Current assets
8248.6
8125.8
9319.5
Inventories
3178.7
3304.8
3711.4
Trade debtors
819
801.2
982.4
694.8
1001.5
873.3
2808.4
2060.7
2472.9
747.6
957.7
1279.5
Total assets
24376.7
26788
30182.7
Shareholders' equity
19127.4
22414.5
26082.7
508.8
508.5
336.5
425.2
544.9
667.4
Current liabilities
4315.4
3320.1
3096
2237.5
1402
1091.6
477.1
292.9
254.2
Trade creditors
531.3
534.4
582.5
114.5
119.8
130.6
954.9
970.9
1037.1
24376.7
26788
30182.7
Ratio Analysis
2011
2012
2013 E
Current Ratio
1.91
2.45
3.01
Quick Ratio
1.17
1.45
1.81
Cash ratio
0.173
0.288
0.413
Liquidity Ratio
Activity Ratio
10
96.1
100.46
99.74
151.86
147.16
143.83
26.29
16.51
15.88
29.46
30.18
28.22
0.84
0.78
0.77
Equity Turnover
1.13
0.96
0.9
1.31
1.15
1.1
39.90%
42.00%
42.00%
23.31%
25.25%
25.25%
18.29%
20.93%
21.54%
ROA
15.40%
16.40%
16.50%
ROE
20.60%
20.20%
19.40%
0.21
0.14
0.09
0.28
0.19
0.12
13.79
10.84
20.81
Sales Growth
16.60%
1.20%
9.00%
Earnings Growth
11.10%
15.80%
12.20%
Assets Growth
8.20%
9.90%
12.70%
Equity Growth
19.80%
17.20%
16.40%
14.70%
15.70%
11.80%
Profitability Ratio
Solvency Ratio
Growth Analysis
11