THAPAR INSTITUTE OF ENGINEERING AND TECHNOLOGY

SCHOOL OF HUMANITIES AND SOCIAL SCIENCES

QUIZ 1, ADVANCE FINANCE (UHU046)
DATE: 6TH APRIL, 2022
TIME: 10 MINUTES
MARKS: 10

NAME :
ROLL NO.
BRANCH AND GROUP

1. …………………….is also called as full payout lease. It is one of the long-term

leases and cannot be cancellable before the expiry of the agreement.
A. Operating lease
B. Financing lease
C. Sale and lease back
D. Direct Lease
2. In excel PMT command is used for :
A. Annuity
B. Premium
C. Years
D. Future value
3. In the case of present value of after-tax cash outflows under the leasing option is
lesser than the present value of after-tax cash outflows of the buying option, it is
advisable ………………………..
A. To take the asset on lease.
B. Not to take the asset on lease.
C. Its better to purchase the asset
D. None of the above.
4. IRR is that rate where NPV is equal to:
A. One
B. Zero
C. Positive
D. Negative
5. The corporate restructuring, often compared to……………………….., is a process of
treatment for ailing companies based on the professional diagnosis.
A. Medical surgery
B. Rehabilitation
C. Medical treatment
D. None of the above
6. Which is an example of external source of finance:
A. Owner’s Fund
B. Retained profits
C. Sale of assets
D. Hire-purchase

7. Which is not an example of marketable securities in India:

A. ETF
 B. Mutual funds

C. Fixed Deposits

D. Bond

8. The regulator of capital market in India is:

A. RBI

B. SEBI

C. NSDL

D. FMC

9. REC Ltd has Rs. 42.34 earnings per share and it is capitalized at 10%. Also it has
a return of 15% on investment. Using Walter’s model determine the optimum
payout of REC will:

A. 100%

B. 200%

C. 50%

D. 0%

10.Which is not a relevant theory of dividend:

A. MM Theory

B. Gordon Model

C. Walter’s Model

D. Discounted Cash Model