Section C (4 Mark)
Read the senario and answer to the question.
Assuming that Mahesh owns a building which he insures along with its contents for Rs. 12 lakh. However the market value of the building and its content is Rs. 15 lakh. Assuming that the building along with its contents is partially destroyed by fire and the loss assessed of Rs. 1 lakh what is the amount of money insurance company would pay as claim reimbursement to Mahesh?
Section C (4 Mark)
Read the senario and answer to the question.
Harish wants to know what amount is eligible for deductible u/s 24 of Income Tax for housing loan repayments in computation of his Income tax liability for AY 2010-11.
Section A (1 Mark)
Select the correct statement regarding the market portfolio. It:
Section A (1 Mark)
Manish is thinking of acquiring some shares of ABC Ltd. The rate of returns is as follows:
Calculate the expected return on the investments
Section C (4 Mark)
Read the senario and answer to the question.
Mr. Bhaitia will continue to invest Rs. 10,000 in his PPF a/c at the beginning of each year till his retirement. Then calculate how much he has to save extra at the end of per month in a scheme to achieve his retirement corpus with a yield of 10%?
Section A (1 Mark)
The basic competitive factors facing industries include all of the following except:
Section A (1 Mark)
Psychologists have found that people who make decisions that turn out badly blame themselves more when that decision was unconventional. The name for this phenomenon is
Section B (2 Mark)
Which of the following statements with respect to US Taxation Structure is/are correct?
Section B (2 Mark)
You are considering the purchase of a quadruplex apartment. Effective gross income (EGI) during the first year of operations is expected to be Rs33,600 (Rs700 per month per unit). First-year operating expenses are expected to be Rs. 13,440 (at 40 percent of EGI). Ignore capital expenditures. The purchase price of the quadruplex is Rs. 200,000. The acquisition will be financed with Rs60,000 in equity and a Rs. 140,000 standard fixed-rate mortgage. The interest rate on the debt financing is eight percent and the loan term is 30 years. Assume, for simplicity, that payments will be made annually and that there are no up-front financing costs.
What is the overall capitalization rate?
Section C (4 Mark)
A Portfolio manager is holding the following portfolio:
The risk free rate of return is 6% and the portfolio’s required rate of return is 12.5%. The manager would like to sell all of his holdings in stock A and use the proceeds to purchase more shares of stock D. What would be the portfolio’s required rate of return following this change?