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Comparing ROE of Companies
Comparing ROE of Companies
Q2. . Company A has issued 50 shares till now. The company decided to raise capital of
Rs 7,50,000 from public with a value of Rs 6,000 per share. What would be the total shares issued
after raising capital from public.
1. 125
2. 150
3. 175
4. 200
5.
1. ii
2. i
3. ii & iii
4. iii & i
Q4 Calculate PE ratio if PEG ratio (price/earnings to growth ratio) is 2 and earnings growth rate is
18%
1. 18
2. 30
3. 36
4. 9
1. EV is higher
2. EV is lower
3. EV is fluctuating
4. None of the above
1. Assets – Liabilities
2. Assets – Current Liabilities
3. Assets – Reserves
Q7. Two stocks X and Y are given. X reached an all-time high last year around Rs 2500 but has since
fallen to Rs 500 per share. Y is a smaller company but has recently gone from Rs 250 to Rs 500 per
share. Assuming rest of the figures to be equal, which stock would you buy?
1. X
2. Y
3. Neither
Q8. In the following is the RSI of HDFC Housing Development Finance Co., which of the following
best describes the circled area is the index
1. Oversold
2. Overbought
3. None of the above
Q9. While using MACD indicator to analyse stocks, when does it indicate buy?
1. Stop Loss can trigger a stock sale even if the stock's price dips only slightly below the trigger
price before quickly recovering.
2. The Stop Loss Trigger Price is not the price at which the order gets executed.
3. For a sell order, the limit price must be greater than or equal to the trigger price.
Q11. The debt-to-equity ratios of three companies are as follows:
Hindustan Unilever Ltd – 0
Nestle India Ltd - 0.6
ITC - 0.2
Which among the following company is comparatively good at managing their finances through
owned money instead of borrowed money?
Q12. ABC ltd wants to borrow money for 6 years for which interest will be paid yearly at 11%. This is
an example of
1. Short-term bond
2. Medium-term bond
3. Long- term Bond
Q13.
1. MACD
2. Bollinger Band
3. Divergence Indicator
4. McGinley Dynamic
Q14. Statement 1: Enterprise Value = (share price * No. of shares) + total debt – cash
1. Statement 1 is incorrect
2. Statement 2 is incorrect
3. Both the statements are incorrect
4. Both the statements are correct
Q15. The resistance level is always below the current market price.
1. True
2. False
Q17. Tata Motors reported a loss of Rs 10 Cr which led to the investors to sell the shares they held in
this company. What will happen to the stock price if demand for the same was not keeping pace in
the given situation?
Q19. Sun Pharma has equity capital of Rs 60 Crs and face value of Rs 15. If company earns a profit of
Rs 50 Cr and current market price is 575, find the P/E ratio.
1. 11.5
2. 13
3. 46
4. 45
Q20. Rahul wants to invest in mutual funds. He wrote down a list of advantages of mutual funds.
Find out which among the following is not an advantage of mutual funds