Question 1

Statement I: Financial risk is associated with a firm's sources of financing.

Statement II: The use of financial leverage is the source of financial risk

Options :

A : Statement I is correct.

B : Statement II is correct

C : Both statements are correct.

D : Both statements are incorrect.

Answer: B

Question 2

What is the quantum of deduction allowed u/s 80U?

Options :

A : Rs. 40,000

B : Rs. 75,000

C : Rs. 60,000

D : Rs. 55,000

Answer: D

Question 3

How many members are needed to form a society?

Options :

A : One single person

B : Two or more

C : Five or more persons

D : Seven or more

Answer: C

Question 4

According to the dividend-growth model, the valuation of common stock depends on:

Options :

A : I and II

B : I and Ill

C : II and Ill

D : All of the above

Answer: A

Question 5

Mr. Tiwari is the sole income earner in the family. Mrs. Tiwari is a homemaker. They are aged 40 and 36

respectively Life expectancy for both of them is another 40 years. They have no children. Other

information you have is: Current investment portfolio Rs. 20 lakhs, Estimated final expenses Rs. 1 lakh,

present annual expenses are of Rs. 4 lakhs (including Rs. 1 lakh of Mr. Tiwari's personal expenses), Mr.

Tiwari's post tax income in hand is Rs. 3.5 lakhs. Assume a post tax and post inflation rate is 4%.

Calculate the insurance requirement under the Needs Based Method?

Options :

A : Rs. 43 Lakhs

B : Rs. 42 Lakhs

C : Rs. 62 Lakhs

D : Rs. 51 Lakhs

Answer: D