Assignment 4

Zero-based budgeting first came out in___
1960
1980
1950
1990
What is designed to reveal whether a project is feasible or not

A feasibility study
A budgetary study
A forecasting study
A marketing study
Under CAPM approach expected rate of return from an investment is equal to

a risk free return
a risk free return plus risk premium for investment
a risk free return plus risk premium for diversifiable risks
a risk free return minus risk premium for investment
The manner in which an organization’s assets are financed is referred to as its

Capital structure
Financial structure
Asset structure
Owners structure
In Project management when does planning take place?

Before the project
During the project execution
At the start of the project
After the project
The details of financial resources availed & the ways in which such resources are used
during a particular accounting period are given in a statement called as
funds flow statement
profit and loss account statement
balancesheet statement
cash flow statement
Equity shares are known as:

debt securities
ownership securities
bonds
debentures
Which of the following is not included in the capital structure?
long term debt
preferred stock
current assets
retailed earning
Which of the sources of finance has an implicit cost of capital

equity share capital
preference share capital
debentures
retained earnings
A project finaning structure involves two componenets_____

debit & credit
debt & equity
debentures & bonds
credit & bonds
_is not an internal factor affecting the weighted average cost of capital of a firm.
investment policy of firm
capital sructure of firm
dividend policy followed
market risk premium for the firm
The investment proposal may be accepted if IRR is______the cost of capital.

greater than
less than
equal to
not considered for
____is not used to estimate cost of equity capital

external yield criterion
dividend plus growth rate
equity capitalization approach
capital asset pricing model
What is not used to estimate cost of equity capital?

external yield criterion
dividend plus growth rate
equity capitalization approach
capital asset pricing model
Which stage of project management life cycle requires the maximum time of completion
Conceptualization
Planning
Execution
Estimation
Cost of equity share capital is more than cost of debt because

equity shares are not easily saleable
equity shares do not provide the fixed dividend rate
face value of equity shares is less than face value of debentures
equity shares have high risk than debt
What is the purpose of feasibility study?

provide quality information for decision making
establich market trends
give focus to project & outline alternatives
specify business alternatives
Major component of marketing feasibiilty study is

competitiors and potential customers
return on investment
hardware & software available
return of investment
In which market the newly issued securities and share are bought or sold during initial
public Offerings(IPO)?
primary market
secondary market
insurance market
investment market
The period in years to recover an investment is known as________

payback
ROI
IRR
Return gain
While designing a capital structure a finance manager should choose a pattern of capital
which
Maximize cost of capital only
Maximizes the owner’s return
Maximizes the cost of capital and minimizes the owner’s return
Minimize the owner's return
The decisions regarding the forms of financing, their requirements, and their relative
proportions in total capitalization are known as
Equity decisions
Equilibrium decisions
Outright decisions
Capital structure decisions
When debt instruments divided in smaller units are unsecured, they are called as
debentures
bonds
preference capital
equity capital
Capital raised from private sources by an issue of securities to select group of investors
is called as
public issue
rights issue
preference issue
private placement issue
Depreciation does not represent a cash flow, hence it is irrelevant to the investment
analysis.
True
False
Participating preference shares get a share in the profits of the company after a certain
rate of dividend is paid to the equity shareholder which is in addition to the fixed dividend
already paid.
True
False
The available investment proposal is selected before conducting market analysis.

True
False
The available investment proposal is selected only after conducting market analysis.
True
False
The debt service coverage ratio checks the profitability of a project

True
False
The IRR method implicitly assumes that the intermittent cash flows are reinvested at the
rate equal to the IRR of the project
True
False
Assignment 2
Financing infrastructure projects through the project finance route offers various benefits such as
______ & _______.
the opportunity for risk sharing
minimum profit margins
reduction in debt capacity
extending the debt capacity
The government looked to public-private partnerships to ______ and revitalize its _____.
demotivate investment
transport and energy sectors
promote investment
fiscal policy
Initial reforms failed to stimulate enough private investment in infrastructure, as there was only
about ____ investment during the period of _____.
US$55 billion
10th five-year plan
8th five-year plan
US$55 million
The initiatives discussed in the case urged rapid growth in Indian infrastructure lending by banks,
which increased from around _____ to ______.
US$2.4 billion in 2000
US$1.4 billion in 2000
US$173 billion in 2013.
US$ 175 billion in 2013
In the period from April 2006 to March 2015, the IIFCL had been involved in several infrastructure
improvements, and it had: ______ & _________.
Raised about USD 6.5 billion from the domestic markets
Added about 50 million tons of port capacity
Not contributed to road development
Avoided metro rail projects

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Zero-based budgeting first came out in___

What is designed to reveal whether a project is feasible or not

Under CAPM approach expected rate of return from an investment is equal to

The manner in which an organization’s assets are financed is referred to as its

In Project management when does planning take place?

Equity shares are known as:

Which of the sources of finance has an implicit cost of capital

A project finaning structure involves two componenets_____

The investment proposal may be accepted if IRR is______the cost of capital.

____is not used to estimate cost of equity capital

What is not used to estimate cost of equity capital?

Cost of equity share capital is more than cost of debt because

What is the purpose of feasibility study?

Major component of marketing feasibiilty study is

The period in years to recover an investment is known as________

The available investment proposal is selected before conducting market analysis.

The debt service coverage ratio checks the profitability of a project

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