This is a timed quiz. You will be given 360 seconds to answer all questions. Are you ready?


Question 1

Consider the below mentioned statements and state the correct code of the statements being true or false.

Statement (I): A debt-equity ratio of 2: 1 indicates that for every 1 unit of equity, the company has raised 2 units of debt.

The cost of floating an equity issue is lesser than the cost of floating a debt

Correct! Wrong!

Question 2

Authorised capital of a company is Rs. 5 lacs ; 40% of it is paid up. Loss incurred during the year is Rs. 50,000. Accumulated loss carried from last year is Rs. 2 lac. The company has a Tangible Net Worth of:

Correct! Wrong!

Question 3

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

Correct! Wrong!

Question 4

Which of the following correctly defines Financial Risk

Correct! Wrong!

Question 5

Debt Service Coverage Ratio indicates which one of the following?

Correct! Wrong!


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