18-19 May 2011 : VU Fall Midterm Current Papers (May 2011)
Thursday, May 19, 2011 Posted In .Midterm May 2011 Edit ThisACC501 VU Midterm Current Paper (May 2011)
What do you understand by seniority in a bond indenture?
Explain the difference between Simple Interest & Compound Interest with the help of example?
What is underwriting contract? Discuss in detail?
Discuss the significance of financial statements?
CVP Corporation has a policy of paying a $10 per share dividend every year. This policy is to continue indefinitely. What is the value of a share of stock if the required rate of return is 20%?
Why would you prefer corporate form of organization over other forms of business organizations? Discuss giving at least three arguments.
What do you understand by seniority in a bond indenture?
ACC501 VU Midterm Current Paper (May 2011)
<5 marks > Question: Find out the current price of the stock in the following cases:
(a) Mr. Asad buys a share of stock today, with a plan to sell it in a year, hoping that its worth will be Rs. 90 at that time, along with a dividend payment of Rs. 10 per share. The required rate of return on the investment is 25%.
(b) SNT Corporation has policy of paying a Rs. 15 per share dividend per year. This policy is to continue definitely with a required rate of return of 20%
<3 marks> Question:
You need Rs. 500,000 to buy a new vehicle. If you have Rs. 60,000 to invest at 15 percent compounded annually, how long will you have to wait to buy the vehicle
(a) Mr. Asad buys a share of stock today, with a plan to sell it in a year, hoping that its worth will be Rs. 90 at that time, along with a dividend payment of Rs. 10 per share. The required rate of return on the investment is 25%.
(b) SNT Corporation has policy of paying a Rs. 15 per share dividend per year. This policy is to continue definitely with a required rate of return of 20%
<3 marks> Question:
You need Rs. 500,000 to buy a new vehicle. If you have Rs. 60,000 to invest at 15 percent compounded annually, how long will you have to wait to buy the vehicle
ACC301 VU Midterm Current Paper (May 2011)
total question 27
MCQz 22
3 questions of 3 marks
2 questions of 5 marks
MCQz was bit confusing
disqualifications of an auditor ?section 253
if you hired by a government bank as an auditor what you do for permot bank's
credibility?
what is audit process and what is its importance?
audit risk assessment
MCQz 22
3 questions of 3 marks
2 questions of 5 marks
MCQz was bit confusing
disqualifications of an auditor ?section 253
if you hired by a government bank as an auditor what you do for permot bank's
credibility?
what is audit process and what is its importance?
audit risk assessment
Eng301 VU Midterm Current Paper (May 2011)
Eng201 overseas
totoal 17 questions
10 mcqs
1.what is courtsy closing?2
2.what is the general purpose of bussiness message?2
3.what is coherence and why it is important?(5)
4.what are the general rules of direct request?(5)
5.what is biased language give examples?(5)
totoal 17 questions
10 mcqs
1.what is courtsy closing?2
2.what is the general purpose of bussiness message?2
3.what is coherence and why it is important?(5)
4.what are the general rules of direct request?(5)
5.what is biased language give examples?(5)
Cs201 VU Midterm Current Paper (May 2011)
Q No: 1 Disk are ……. Divice having access time of …..millisecond. 1
Q No: 2 C is widely known as development language of ……operating. 1
Q No: 3 Codes the following coed segment, At with time number, error an occur. 1
1. Cont int x=10;
2. Inty =5;
3. Const int * ptr = 8x;
4. X + x ++;
Q No: 4 The keyword ….. is used to return some value from a function. 1
Q No: 5 let suppose
Union intor double {
Intival;
Double chanrva;
}
Main()
{ intor double VZA;
Int size;
Size=size of (VZA);}
What will be the value of variable “size” if int occupies 4 bytes and double occupies 8 bytes?
Q No: 6 The value of x after evaluating the expression x=10+3*4/2-1 will be. 1
Q No: 7 In call by reference ……… of a variable is pass to call function. 1
Q No: 8 To assigned a value to character type variable are used around the value. 1
Q No 9 What will be the correct syntax for initialization of pointer ptr with string "programming"?
Q No 10 Which character is inserted at the end of string to indicate the end of string?
Q No 21 Why matrixes always start with 0 indexes? 2
Q No 22 Which bit of a number is a sign bit? 2
Q No 23 What do you know about the Stream? Define the types of stream. 3
Q No 24 What is Difference between Array and List? 3
Q No 25 What are the differences are similarities between Structures and Unions? 5
Q No: 2 C is widely known as development language of ……operating. 1
Q No: 3 Codes the following coed segment, At with time number, error an occur. 1
1. Cont int x=10;
2. Inty =5;
3. Const int * ptr = 8x;
4. X + x ++;
Q No: 4 The keyword ….. is used to return some value from a function. 1
Q No: 5 let suppose
Union intor double {
Intival;
Double chanrva;
}
Main()
{ intor double VZA;
Int size;
Size=size of (VZA);}
What will be the value of variable “size” if int occupies 4 bytes and double occupies 8 bytes?
Q No: 6 The value of x after evaluating the expression x=10+3*4/2-1 will be. 1
Q No: 7 In call by reference ……… of a variable is pass to call function. 1
Q No: 8 To assigned a value to character type variable are used around the value. 1
Q No 9 What will be the correct syntax for initialization of pointer ptr with string "programming"?
Q No 10 Which character is inserted at the end of string to indicate the end of string?
Q No 21 Why matrixes always start with 0 indexes? 2
Q No 22 Which bit of a number is a sign bit? 2
Q No 23 What do you know about the Stream? Define the types of stream. 3
Q No 24 What is Difference between Array and List? 3
Q No 25 What are the differences are similarities between Structures and Unions? 5
CS302 VU Midterm Current Paper (May 2011)
Objective was easy and 70% was from first 12 lectures.
5 Marks Questions were
a) Give a Circuit Diagram of 2 input 38 Bit Multiplexer.
b) Give the Circuit Diagram & Functional Table of Full Adder
5 Marks Questions were
a) Give a Circuit Diagram of 2 input 38 Bit Multiplexer.
b) Give the Circuit Diagram & Functional Table of Full Adder
CS302 VU Midterm Current Paper (May 2011)
Current paper of cs302
Q1- Show Nand circuit through SR latch diagram .
Q2- What the GAL16V8 depicts ?
Q3- Give two uses of Decoders.
Q4- Convert decimal ciruit to BCD and show it through circuit diagrams.
Q5- Why 4-bit parallel Adder is needed for the addition of 2 digigt BCD ?
Q1- Show Nand circuit through SR latch diagram .
Q2- What the GAL16V8 depicts ?
Q3- Give two uses of Decoders.
Q4- Convert decimal ciruit to BCD and show it through circuit diagrams.
Q5- Why 4-bit parallel Adder is needed for the addition of 2 digigt BCD ?
CS304 VU Midterm Current Paper (May 2011)
some of the mcqs were from past...n....there was a lot of coding...
write c++ code for operator() ......5 marks
write c++ code for operator[] using string class.......5 marks.....
there was coding in which have to tell the output.....3 marks.
static data members.......2.marks
write c++ code for operator() ......5 marks
write c++ code for operator[] using string class.......5 marks.....
there was coding in which have to tell the output.....3 marks.
static data members.......2.marks
CS402 VU Midterm Current Paper (May 2011)
CS402- Theory of Automata (Session - 2)
Question No: 1 ( Marks: 1 ) - Please choose one
If an alphabet has n number of letter, then number of strings of length m will be
n+m
(n)(m)
mn
nm
Question No: 2 ( Marks: 1 ) - Please choose one
Languages generated by kleene star are always ______________.
Finite
Infinite
Sometimes finite & sometimes infinite
None of the these
Question No: 3 ( Marks: 1 ) - Please choose one
1*(1 + ) = 1* this statement is
True
False
Sometimes true & sometimes false
None of these
Question No: 4 ( Marks: 1 ) - Please choose one
a*b* = (ab)* this expression is __________
Question No: 1 ( Marks: 1 ) - Please choose one
If an alphabet has n number of letter, then number of strings of length m will be
n+m
(n)(m)
mn
nm
Question No: 2 ( Marks: 1 ) - Please choose one
Languages generated by kleene star are always ______________.
Finite
Infinite
Sometimes finite & sometimes infinite
None of the these
Question No: 3 ( Marks: 1 ) - Please choose one
1*(1 + ) = 1* this statement is
True
False
Sometimes true & sometimes false
None of these
Question No: 4 ( Marks: 1 ) - Please choose one
a*b* = (ab)* this expression is __________
CS403 VU Midterm Current Paper (May 2011)
Q- What is the significance of normalization?
Q- Define Relationship.
Q- What is the basic function of a DML Compiler?
Q- Define primary key and give one example.
Q- What do you know about Insertion anomaly?
Q- Define the first normal form.
Q- Define Relationship.
Q- What is the basic function of a DML Compiler?
Q- Define primary key and give one example.
Q- What do you know about Insertion anomaly?
Q- Define the first normal form.
CS403 VU Midterm Current Paper (May 2011)
CS403 (midterm)
Total 26 thy Questions as all u know that
Nd 20 mcqz thy y bhi pata hn nd 6 subjective thy
Question No: 1 ( Marks: 1 )
Which of the following constraints enforces entity integrity?
Ø PRIMARY KEY
Ø FOREIGN KEY
Ø CHECK
Ø NOT NULL
Question No: 2 ( Marks: 1 )
Which of the following is not true about relational tables?
Ø Column values are of the same kind.
Ø Each row is unique.
Ø Each column must have a unique name.
Ø The sequence of rows is significant.
Question No: 3 ( Marks: 1 )
Controlling redundancy in a database management system DOES NOT help to
Ø avoid duplication
Ø avoid unnecessary wastage of storage space
Ø avoid unauthorised access to data
Ø avoid inconsistency among data
Question No: 4 ( Marks: 1 )
Which of the following functions are NOT performed by a database administrator?
Ø Planning, designing and implementing database systems
Ø Establishing standards and procedures for database systems
Ø Communicating with database users
Ø Allocation of storage locations and data structures
Question No: 5 ( Marks: 1 )
Which of the following is a correct way to implement one-to-many relationship while designing tables?
Ø by splitting the data into two tables with primary key and
foreign key relationships.
Ø using a junction table with the keys from both the tables forming the composite primary key of the junction table.
Ø by splitting each table into three
Ø as a single table and rarely as two tables with primary and foreign key relationships.
Question No: 6 ( Marks: 1 )
As part of database naming conventions, attribute names should use suffixes such as ID, NUMBER or CODE for the _______.
Ø primary key
Ø foreign key
Ø index
Ø determinant
Question No: 7 ( Marks: 1 )
The ER- data model is an example of:
Ø Physical database
Ø Logical database
Ø Relational database
Ø Conceptual database
Question No: 8 ( Marks: 1 )
Identify the correct way to implement one-to-one relationship in tables?
Ø by splitting the data into two tables with primary key and
foreign key relationships.
Ø as a single table and rarely as two tables with primary
and foreign key relationships.
Ø using a junction table with the keys from both the tables
forming the composite primary key of the junction table
Ø by creating two separate tables
Question No: 9 ( Marks: 1 )
A superkey that does not contain a subset of attributes that is itself a superkey is called a ____.
Ø candidate key
Ø primary key
Ø superkey
Ø secondary key
Question No: 10 ( Marks: 1 )
As part of database naming conventions, attribute names should use suffixes such as ID, NUMBER or CODE for the _______.
Ø primary key
Ø foreign key
Ø index
Ø determinant
Question No: 11 ( Marks: 1 )
Which of the following concepts is applicable with respect to 2NF?
Ø Full functional dependency
Ø Any kind of dependency
Ø Transitive dependency
Ø Non-transitive dependency
Question No: 12 ( Marks: 1 )
Structural constraints of a relationship type refer to
Ø identifying the owner entity type relevant to a given entity type
Ø whether the existence of an entity depends on it being related to another entity via the relationship type.
Ø the role that a participating entity from the entity type plays in each relationship instance.
Ø the constraints applicable in granting access to tables, columns and views in a database schema.
Question:13 (Marks 1
)Which feature of data provides conversions from inconsistent state of DB to a consisitent state ensuring mimimum data loss?
Ø User accessible catalog
Ø Data processing
Ø Recovery service
Ø Authorization service
Question:
1:Write two completeness constraints?(2 marks)
2:Write 2 significance of normailization?(2 marks)
3:Write when thers need of constraints in data?(3marks)
4:StdID(StdID) to identify the StdCGPA(StdCGPA)(3marks)
Find the functional dependency of the above code.
5:Write five points of relational model?(5 marks)
6:define existence dependency with one axample(5 marks)
6:define existence dependency with one axample(5 marks)
CS403 VU Midterm Current Paper (May 2011)
For which purpose do we use relational data model?
What major problem can occur if we do not normalize a relation into the first normal form?
In which situation do a recursive relationship exist?
What is DML (Data Manipulation Language)?
What are the three important objectives for using data types while specifying attributes?
Briefly explain super key in relation with primary key.
When is a functional dependency F said to be minimal?
What major problem can occur if we do not normalize a relation into the first normal form?
In which situation do a recursive relationship exist?
What is DML (Data Manipulation Language)?
What are the three important objectives for using data types while specifying attributes?
Briefly explain super key in relation with primary key.
When is a functional dependency F said to be minimal?
Cs501 VU Midterm Current Paper (May 2011)
1024x768 1.How many types of instructions are available in SRC? Name them. What is the format of each of these instructions…….5marks 2.Write the Structural RTL for the call instruction for uni-bus data path implementation.
call ra, rb…………………..5 marks
3.Write theStructural RTL for the mov instruction for uni-bus data path implementation.
mov ra, rb………………………..3 marks
4.How many stages are in the pipelined version of SRC? Name them……..3 marks 5.How can you define microprogram?.....2 marks
6. Write the Structural RTL for the 'not instruction'……….2 marks
call ra, rb…………………..5 marks
3.Write theStructural RTL for the mov instruction for uni-bus data path implementation.
mov ra, rb………………………..3 marks
4.How many stages are in the pipelined version of SRC? Name them……..3 marks 5.How can you define microprogram?.....2 marks
6. Write the Structural RTL for the 'not instruction'……….2 marks
CS502 VU Midterm Current Paper (May 2011)
50% MCQ's were from past papers
Long questions were
What is Average and Worst Time of Quick Sort (2)
what are two basic steps of dynamic programmming (2)
What is Catalan NO described its formula(3)
Differentiate between selection, Bubble, and Insertion Sort(3)
What is common thing and what is differenct between dynamic programming and divide & Conquer(5)
Arrange the matrices in right order for multiplication (5).. from chain matrix multiplication.
Long questions were
What is Average and Worst Time of Quick Sort (2)
what are two basic steps of dynamic programmming (2)
What is Catalan NO described its formula(3)
Differentiate between selection, Bubble, and Insertion Sort(3)
What is common thing and what is differenct between dynamic programming and divide & Conquer(5)
Arrange the matrices in right order for multiplication (5).. from chain matrix multiplication.
CS504 VU Midterm Current Paper (May 2011)
ojective 95% new thy ......... past pprz n recent sy koe nae aya is liye khud hi acha acha tiar kr lo.....
subjective:
1- Disscuss some of the purpose of interacting diagram? (5)
2-What should be consideration for maintain design? (5)
3- purpose of collaborating diagram? (3)
4- It is fact that gud design makes maintenance easier.Which design princiole help this to be acheived? (3)
5- Some statements about software design......v have to choose correct statements which is given.....4 was given.... (2)
6- There was given one diagram we have to shown
subjective:
1- Disscuss some of the purpose of interacting diagram? (5)
2-What should be consideration for maintain design? (5)
3- purpose of collaborating diagram? (3)
4- It is fact that gud design makes maintenance easier.Which design princiole help this to be acheived? (3)
5- Some statements about software design......v have to choose correct statements which is given.....4 was given.... (2)
6- There was given one diagram we have to shown
CS605 VU Midterm Current Paper (May 2011)
mcqs are not difficult
subjective is
y we use control chart?
y we used project planning?
DD approach is used in research project explain why?
What are the terms contingency plane and risk management?
In order to assess the overall project risks, what questions need to be addressed? Give any five?
causal and strict type?
subjective is
y we use control chart?
y we used project planning?
DD approach is used in research project explain why?
What are the terms contingency plane and risk management?
In order to assess the overall project risks, what questions need to be addressed? Give any five?
causal and strict type?
CS605 VU Midterm Current Paper (May 2011)
CS605 Paper dated 18-05-2011, session: 3
Total Questions 23
16 MCQ’s
Why we use Metrics for software? ---------- (2 Marks)
Describe two Characteristics of Risk. --------------- (2 Marks)
Why Democratic decentralized is best for research projects? --- (2 Marks)
Three types of Risk Components and Driver ----- (3 Marks)
How you can identify problems in Software? --- (3 Marks)
What is Software Scope Estimation? ------ (5 Marks)
Usability is not only for “ User Friendly Application” ? What are other factors? ----- (5 Marks)
Total Questions 23
16 MCQ’s
Why we use Metrics for software? ---------- (2 Marks)
Describe two Characteristics of Risk. --------------- (2 Marks)
Why Democratic decentralized is best for research projects? --- (2 Marks)
Three types of Risk Components and Driver ----- (3 Marks)
How you can identify problems in Software? --- (3 Marks)
What is Software Scope Estimation? ------ (5 Marks)
Usability is not only for “ User Friendly Application” ? What are other factors? ----- (5 Marks)
CS614 VU Midterm Current Paper (May 2011)
mcqs 10 old thay 6 new thayy
2 marks Qs
1)y DD is best approach for research projects?
2) how metrices are used for small organizations?
3) concept based question tha
3 marks Qs
1) 3 External Input counting Rules
2) 3 dimensions of Feasibility
5 marks Qs
how interdependency affect project schedule?
According to the studies of Caper Jones what techniques should be used in addition to testing to increase the Defect Removal Efficiency? Briefly explain
2 marks Qs
1)y DD is best approach for research projects?
2) how metrices are used for small organizations?
3) concept based question tha
3 marks Qs
1) 3 External Input counting Rules
2) 3 dimensions of Feasibility
5 marks Qs
how interdependency affect project schedule?
According to the studies of Caper Jones what techniques should be used in addition to testing to increase the Defect Removal Efficiency? Briefly explain
ECO401 VU Midterm Current Paper (May 2011)
Subjective Question
Q.1 why economists say that when firms earn zero profits they actually earn normal profits? (3)
Q.2 Why LRAC is U- shaped in the long run?(3)
Q.3 Differentiate between External economies of scales and external dis-economies of scales, with examples.(5)
Q.4 Price Limit graph was given and had to answer questions about it.(5)
Q.1 why economists say that when firms earn zero profits they actually earn normal profits? (3)
Q.2 Why LRAC is U- shaped in the long run?(3)
Q.3 Differentiate between External economies of scales and external dis-economies of scales, with examples.(5)
Q.4 Price Limit graph was given and had to answer questions about it.(5)
ECO401 VU Midterm Current Paper (May 2011)
Total 32 questions 28 mcqs and 4 subjective questions
MCQS were almost all new, very very tough, calculative like graphs and schedules were given and we had to analyse demand, supply changes, AVC, MC MR etc ( you really need to be competent enough to judge) 70% were new.
Subjective Part:( it was comparatively easy)
Q.1 why economists say that when firms earn zero profits they actually earn normal profits?
Q.2 Why LRAC is U- shaped in the long run?
Q.3 Differentiate between External economies of scales and external dis-economies of scales, with examples.
Q.4 Price Limit graph was given and had to answer questions about it. (it had 3 parts)
MCQS were almost all new, very very tough, calculative like graphs and schedules were given and we had to analyse demand, supply changes, AVC, MC MR etc ( you really need to be competent enough to judge) 70% were new.
Subjective Part:( it was comparatively easy)
Q.1 why economists say that when firms earn zero profits they actually earn normal profits?
Q.2 Why LRAC is U- shaped in the long run?
Q.3 Differentiate between External economies of scales and external dis-economies of scales, with examples.
Q.4 Price Limit graph was given and had to answer questions about it. (it had 3 parts)
Eco401 VU Midterm Current Paper (May 2011)
LONG QUESTIONS ARE THERE....
Q.1 : Why the monopolists produce lower quantity at
higher prices compered to perfect competitive firms? (3marks)
Q. 2 : Advantages and disadvantages of monopoly.. (5 marks)
Q.3 : Explain the two main theories of
production regarding time? (5 marks)
Q.1 : Why the monopolists produce lower quantity at
higher prices compered to perfect competitive firms? (3marks)
Q. 2 : Advantages and disadvantages of monopoly.. (5 marks)
Q.3 : Explain the two main theories of
production regarding time? (5 marks)
Eng201 VU Midterm Current Paper (May 2011)
Eng201 overseas
totoal 17 questions
10 mcqs
1.what is courtsy closing?2
2.what is the general purpose of bussiness message?2
3.what is coherence and why it is important?(5)
4.what are the general rules of direct request?(5)
5.what is biased language give examples?(5)
totoal 17 questions
10 mcqs
1.what is courtsy closing?2
2.what is the general purpose of bussiness message?2
3.what is coherence and why it is important?(5)
4.what are the general rules of direct request?(5)
5.what is biased language give examples?(5)
Fin-622 VU Midterm Current Paper (May 2011)
Question
Suppose you have 40% of your portfolio invested in firm A, 30% in firm B, 20% in firm C, and 10% in firm D. You know that the betas for these firms are, respectively, 1.2, 1.4, 0.8, and 1.1. Calculate your portfolio beta.
Answer:
Portfolio beta = XaBa + XbBb +XcBc + XdBd
Xa = portfolio invested in firm A
Ba = beta for firm A
Portfolio beta = (40% * 1.2) + (30% * 1.4) + (20% * .8) + (10%*1.1) = .48 + 0.42 + .16 + .11 = 1.17
Question:
In the year ending January 2008, Wal-Mart paid out Rs.1,326 million as debt interest. How much more tax would Wal-Mart have paid if the firm had been entirely financed by equity? What would be the present value of Wal-Mart’s interest tax shield if the company planned to keep its borrowing permanently at the 2008 level? Assume an interest rate of 8% and a corporate tax rate of 35%.
Answer:
More tax in case of entirely finance by equity:
1326 million *35/100 =464 million
Present value of interest = 1326 million /1 .08 =1218.75 million
Question:
Systemic and unsystematic risk
Answer:
Systematic Risk:
Systematic risks are unanticipated that effects all the assets to some degree. It is non diversifiable. Systematic risk influences large number of assets and is also known as market risk. Systematic Risk is measured by Beta Coefficient or Beta. Beta measure the systematic risk inherent in an asset relative to the market as whole.
Unsystematic Risk or Unique Risk:
It affects only specific assets or a firm. it is also known as Diversifiable or Unique or Asset- specific Risk. It can be eliminated by Diversification therefore; a Portfolio with many assets has almost zero Unsystematic Risk.
Question:
Differentiate between a bond’s Coupon rate and its Yield to Maturity?
Answer:
Yield-to-Maturity, or YTM, is the single discount rate applied to all future interest and principal payments. It will produce a present value equivalent to the price of the security.
YTM is the rate of return estimated on a bond if it is held until the maturity date, The coupon rate, or, more simply stated, coupon of a particular bond, is the amount of interest paid every year. It is expressed as a per cent age of the face value. Basically, it is the rate of interest that a bond issuer, or debtor, will pay to the holder of the bond. Thus, the coupon rate determines the income that will be earned from the bond.
1. YTM is the rate of return estimated on a bond if it is held until the maturity date, while the coupon rate is the amount of interest paid per year, and is expressed as a percentageof the face value of the bond.
2. YTM includes the coupon rate in its calculation.
Question:
Why weighted average cost of capital (WACC) should be used as discount rate for Analyzing the financial viability of a project?
Answer:
The discount rate used to find out the PV of future cash flow is normally the WACC.
Question:
Differentiate between accounting breakeven point and economic break even point.
Answer:
The difference between the accounting and economic break even is a cost factor known as opportunity cost of capital. In accounting break even we calculate the accounting earnings first and then deduct all the costs from earnings to reach at break even except the opportunity cost of capital that is invested in the project.
Economic break even suggests that when you deduct other cost from accounting earnings you should also deduct the cost of capital employed. A project having a positive EVA adds value to firm and a negative EVA reduces the firm’s value.
Question:
Why capital asset pricing model (CAPM) is more suitable to calculate the cost of equity as compared to dividend growth model? Discuss.
Answer:
Using dividend growth model does not mean capital gains; investors can have their income return slowly and at low risk. Many companies have been using this method. If we summarize, its major points were;
• To invest a solid share
• To increase dividends annually
• To avoid inflation and
• Additional income each year
The CAPM on the other hand, tells us that investors demand a higher rate of return for riskier shares. CAPM proposed a higher rate of risks than dividend growth model. CAPM is a model for pricing an individual's security or a portfolio. The investor has a higher rate of risk since he invests in the form of assets. It is generally seen as a much better method of calculating the cost of equity than the dividend growth model (DGM) in that it explicitly takes into account a company’s level of systematic risk relative to the stock market as a whole.
Question:
How stable dividend policy could increase the marketability of a firm’s shares?
Answer:
Stable dividend per share: look favorably by investors and implies low risk firm. It increases the marketability of firm’s share. Cash flow can be planned as dividend amount can be ascertained with accuracy (aid in financial planning)
Question:
Differentiate between the single period capital rationing and multi-period capital rationing.
Answer:
Single period capital rationing
It is a situation where the company has limited amounts of funds in one investment period only. After that period, the company can access funds from various sources, e.g. issuing shares, borrowing from banks or issuing bonds.
Multi-period capital rationing:
When capital is in limited availability in more than one period and selection of projects cannot be made by ranking projects according to PI, this situation is known as multi-period capital rationing.
Question:
A Company had the following data, extracted from its financial statements for the year ending June 30, 2008:
a) Current Ratio = 2
b) Acid Ratio = 1.5
c) Current Liabilities = $500,000
d) Inventor y Turnover = 5
e) Gross Profit Margin = 20 percent
What were its sales for the year?
Answer:
Current ratio = current assets / current liabilities
= current assets / 500,000
Current assets = 500,000 * 2
= 1,000,000
Acid ratio = current assets / current liabilities
1.5 = current assets / 500,000
Current assets = 500,000*1.5
= 750,000
Inventory = 1,000,000 – 750,000
= 250,000
Inventory turnover = CGS / average inventory
= CGS / 250,000
CGS = 250,000 * 5
= 1,250,000
Sales = 1,250,000/.8
= 1,562,500
Question:
Bank A pays 6.2% interest compounded semiannually and Bank B pays 6% interest, compounded monthly. Which bank off ers the higher effective annual rate?
Answer:
Bank A
EAR = [1 + i/n) n - 1
= (1+6.2%/2)2-1
= (1+3.1%)2-1
= (1+0.031) 2 -1
= (1.031)2-1
= 1.06296-1
Bank B
EAR = [1 + i/n) n – 1
= (1+6%/12)12-1
= (1+.5%)12 -1
= (1+0.005)12-1
= (1.005)12 -1
= 1.06167-1
= 6.1677
Bank A offer higher effective annual rat
Question:
Calculate and compare the effective annual interest rates for Bank A and B, if Bank A is offering interest rate of 10% per year, compounded monthly. Bank B is offering interest rate of 8% per year, compounded quarterly.
Answer:
BANK A (compounded monthly)
EAR = (1+i/n)n-1
= (1+.1/12)12-1
= (1.0083)12 – 1
= 1.1043 - 1
BANK B (compounded quarterly)
EAR = (1+i/n)n-1
= (1+.02)4-1
= (1.02)4 – 1
= (1.08243 -1
= 8.2432
Question:
What is the relationship between market risk of a security and rate of return that investors demand of that security?
Answer:
The extra return that investors require for taking risk is known as the risk premium. The capital asset pricing model states that the expected risk premium of an investment should be proportional to both its beta and the market risk premium. The expected rate of return from any investment is equal to the risk-free interest rate plus the risk premium, so the
CAPM boils down to
r = rf + b(rm – rf )
The security market line is the graphical representation of the CAPM equation. The security market line relates the expected return investor’s demand of a security to the beta.
Question:
A public limited Company is expected to pay Rs.0.50 per share dividend at the end of the year. The dividend is expected to grow at a constant rate of 7% per year. The required rate of return on the stock is 15%. What value per share of the Company’s stock is expected one year from now?
Answer:
D2 = D1(1+g)
= .5(1.07)
= .535
P1 = D2 / r – g
=.535/.15-.07
= . 535/.08
= 6.69
Question:
How much should you pay for a bond with $1,000 face value, a 14 percent coupon rate, and five years to maturity if your appropriate discount rate is 10 percent and interest is paid annually?
Answer:
140/(1.10)+140/(1.10)2+140/(1.10)3+140/(1.10)4+140/(1.10)5 +1000/(1.10)5
127 + 115 + 105 + 95 + 86 + 620.92
1148
Question:
What (high or low) level of Debt Financing would you suggest for the following firms?
A) Firm paying high tax
In this case i suggest that firm should do high debt financing so firm can reduce its tax.
B) Firm paying no tax
In this case i suggest that firm should do low debt financing because firm is already not paying any tax so no need for high debt financing in this situation for the purpose of tax payment.
Question:
Capital ratio for investment
Answer:
Capital Rationing occurs when a company has more amounts of capital budgeting projects with positive net present values than it has money to invest in them. Therefore, some projects that should be accepted are excluded because financial capital is limited. This is known as artificial constraint because the management may dictate the amount to be invested for project purposes.
It is also the artificial constraints because the amount is not based on the product marginal analysis in which the return for each proposal is related to the cost of capital and projects with net present values ar e accepted. A company may adopt a posture of capital rationing because it is fearful of too much growth or hesitant to use external sources of financing.
Question:
Levered and un levered for firm
Answer:
The amount of debt used to finance a firm's assets. A firm with significantly more debt than equity is considered to be highly leveraged.
Leverage is most commonly used in real estate transactions through the use of mortgages to purchase a home.
A firm with no debt in its capital structure known as un levered firm
Question:
Dividend policy and types.
Answer:
The policy a company uses to decide how much it will pay out to shareholders in dividends.
TYPES OF DIVIDEND
1. Cash (most common) are those paid out in form of "real cash". It is a form of investment interest/income and is taxable to the recipient in the year they are paid. It is the most common method of sharing corporate profits.
2. Stock or Scrip dividends (common) are those paid out in form of additional stock shares of the issuing corporation, or other corporation (e.g., its subsidiary corporation).
They are usually issued in proportion to shares owned (e.g., for every 100 shares of stock owned, 5% stock dividend will yield 5 extra shares). This is very similar to a stock split in that it increases the total number of shares while lowering the price of each share and does not change the market capitalization
3. Property or dividends in specie are those paid out in form of assets from the issuing corporation, or other corporation (e.g., its subsidiary corporation). Property dividends are usually paid in the form of products or services pr voided by the corporation. When paying property dividends, the corporation will often use securities of other companies owned by the issuer.
Question:
Difference b/w simple payback period and discount period?
Answer:
The only difference between simple and discounted Pay Back is discounting.
Simple payback method does not care about the time-value of money principle while discounted payback period do take care of this principle in calculation.
Question:
Difference b/w economic breakeven point and accounting breakeven point?
Answer:
Accounting Break Even does not recover cost of capital.
Economic Break even recovers cost of capital
The difference between the accounting and economic break even is a cost factor known as opportunity cost of capital. In accounting break even we calculate the accounting earnings first and then deduct all the costs from earnings to reach at break even except the opportunity cost of capital that is invested in the project.
Economic break even suggests that when you deduct other cost from accounting earnings you should also deduct the cost of capital employed. A project having a positive EVA adds value to firm and a negative EVA reduces the firm’s value.
Question:
Compare and contrast the Stable Dividend per share policy and Constant dividend payout policy.
Answer:
CONSTANT DIVIDEND PAYOUT
A fixed %age is paid out as dividend. Under this policy the dividend amount will vary because the net income is not constant.
STABLE DIVIDEND PER SHARE:
Per share fixed amount of dividend paid every year. Look favor ably by investors and implies low risk firm. Investors can easily forecast and predict their earnings. Aid in financial planning
Question:
AGGRESSIVE AND DEFENSIVE STOCKS
Answer;
Aggressive Stocks have high betas, greater than 1, meaning that their return is more than one-to-one to changes in return of overall market.
Defensive stocks are less volatile to change in market return and have beta of less than one
Question
Difference between Soft and hard capital rationing
Answer:
Capital rationing can be classified into hard and soft, based on whether the factors are external or internal. Hard capital rationing is when constraints that may affect business decisions are externally determined; hard capital rationing does not occur under perfect market conditions. Soft capital rationing occurs when investment expenditure is controlled and limited internally, by restrictions imposed by management.
Question:
Difference between IPO and private placement securities
Answer:
Initial public offerings and private placements are types of offerings of securities for sale to investors. The key differences between the two involve government registration requirements and the potential rates of investment return.
Initial Public Offering
An initial public offering, or IPO, is a private company's first sale of stock to the public.
Often, IPO’s are offered by smaller and younger companies that are looking to grow rapidly. That means IPO’s are a risky investment, because the company has a limited history and the stock's future value is uncertain.
Private Placement
A private placement is a non-public offering that is typically exempt from the usual requirements of registration with the U.S. Securities and Exchange Commission. Private placements usually involve sales of securities to small groups of institutional and accredited investors. Banks, mutual funds, insurance companies and pension funds are most likely to offer private placements.
Differences
A company issuing a private placement has the advantage of not having to pay expensive underwriting fees that are common with IPO’s. Also, private placements are not traded on public exchanges, but in general their rates of return are potentially higher than those of IPO’s.
Question:
How u suggest high or low debt financing for:
Answer;
A) Firm paying high tax
In this case i suggest that firm should do high debt financing so firm can reduce its tax.
B) Firm paying no tax
In this case i suggest that firm should do low debt financing because firm is already not paying any tax so no need for high debt financing in this situation for the purpose of tax payment
Question
Stock A & B have beta of 1.5 & 0.75 respectively. Risk free rate is 7% & average return rate is 13%.By how much required risk of higher risky stock is greater than of lower risky stock? 5marks
Answer:
Stock A
Ere = Rf + Be x (Erm – Rf)
Ere = 0.07+ 1.5 x (0.13 – 0.07)
Ere = 0.07+ 1.5 x (0.06)
Ere = 0.07+ 0.09
Ere = 0.16*100
Ere = 16%
Stock B
Ere = Rf + Be x (Erm – Rf)
Ere = 0.07+ 0.75 x (0.13 – 0.07)
Ere = 0.07+ 0.75 x (0.06)
Ere = 0.07+ 0.045
Ere = 0.115
Ere = 11.5%
The required risk of higher risky stock is 4.5% greater than lower risky stock.
Stock A is highly risky.
Question
How PI is used in capital budgeting decisions.
Answer:
The profitability index, or PI, method compares the present value of future cash inflows with the initial investment on a relative basis. Therefore, the PI is the ratio of the present value of cash flows (PVCF) to the initial investment of the project.
P1 = PVCF / Initial Investment
In this method, a project with a PI greater than 1 is accepted, but a project is rejected when its PI is less than 1.if the present value of cash flows exceeds the initial investment, there is a positive net present value and a PI greater than 1, indicating that the project is acceptable.
Question:
A company has 800,000 12% debt financing. Calculate PV of tax benefit if tax rate is 40%. By how much tax benefit would change if tax rate decreases to 30%.
Answer:
PV of tax benefit = 800000*12% *40%
= 800000*.12 * .4 = 38400
If tax decrease:
PV of tax benefit = 800000*12% *30%
== 800000*.12 * .3 = 28800
Change = 38400-28800 = 9600
Question
What are gear and UN gear beta describe the difference?
Answer:
Beta Geared
The Beta attaching to the ordinary shares of a geared firm. These bear a risk higher than the firms basic activity.
Beta Ungeared
The geared Beta stripped of the effect of gearing. Corresponds to the activity Beta in an equivalent ungeared firm. The inherent systematic riskiness of a firms operations, before allowing for gearing.
Question
Break-even analysis and sensitivity analysis explain it.
Answer:
A breakeven analysis is used to determine how much sales volume your business needs to start making a profit. The breakeven analysis is especially useful when you're developing a pricing strategy, either as part of a marketing plan or a business plan. To conduct a breakeven analysis, use this formula:
Fixed Costs divided by (Revenue per unit - Variable costs per unit)
Sensitivity analysis is used to determine how “sensitive” a model is to changes in the value of the parameters of the model and to changes in the structure of the model.
Parameter sensitivity is usually performed as a series of tests in which the modeler sets different parameter values to see how a change in the parameter causes a change in the dynamic behavior of the stocks. By showing how the model behavior responds to changes in parameter values, sensitivity analysis is a useful tool in model building as well as in model evaluation.
Question:
Differentiate stable dividend policy and the constant dividend policy?
Answer:
Stable dividend per share: look favorably by investors and implies low risk firm. It increases the marketability of firm’s share. Cash flow can be planned as dividend amount can be ascertained with accuracy (aid in financial planning).
Constant dividend payout (div per share/Eps)
A fixed %age is paid out as dividend. Under this policy the dividend amount will vary because the net income is not constant. Thus results in variability of return to investors. The dividends may drop to nil in case of loss. Market price of share will lower.
Question
Suppose you have invested in two stocks A and B their betas are 1.5 and 0.75 respectively. Expected rate of return on Average stock is 13% and risk free return rate is 7%.
By how much does the required rate of return on the riskier stock exceeds the required rate on less risky stock?
Answer:
??????
Fin623 VU Midterm Current Paper (May 2011)
Question No: 2 ( Marks: 1 ) - Please choose one
Which of the following canon of taxation suggests that there should not be any
arbitrariness or ambiguity in respect of amount of tax paid?
► Capacity to Pay
► Certainty
► Simplicity
► Convenience
Under which of the following sections of Income Tax Ordinance 2001 vested the
powers to CBR in order to formulate the IT rule 2002?
► Section 206
► Section 213
► Section 237
► Section 238
If the land situated in Pakistan and used for agriculture purposes then which of the
following factor make distinction between agriculture and non-Agriculture Income?
► Nationality of Pakistan
► Quantity of the product
► Time period
► Human effort
Which of the following section deals with the residential status of Company?
► Section 81
► Section 82
► Section 83
► Section 84
Any gain arising on the disposal of shares in a non-resident company belongs to
which of the following?
► Pakistan- source income
► Foreign source of income
► Both Pakistan and foreign source of income
► None of the given option
The definition of Employment under Sec. 2(22) of the ordinance is categorized in: (this Q come 3 time today in my paper)
► Inclusive Definition
► Exclusive Definition
► Both Inclusive and Exclusive
► None of the given options
Which of the following section of Income Tax Ordinance 2001 deals with perquisites
of Income from Salary and its treatment?
► Section 11
► Section 13
► Section 14
► Section 12
Any Fund for Promotion of Science and Technology in Pakistan is__________ under
Part I of the second schedule of IT Ordinance 2001.
► Wholly Taxable
► Wholly Exempt
► Partly Exempt
► None of the given options
What will be the tax treatment of foreign source salary received by a resident person?
► Wholly taxable
► Partly Taxable
► Wholly exempt
► Wholly exempt only if resident paid foreign tax on his salary
Mr. Khan resident of Pakistan received salary from UK? His salary will be included in
which of the following?
► Pakistan source income
► Foreign source income
► Both Pakistan and foreign source income
Question No: 6 ( Marks: 1 ) - Please choose one
Under which of the following sections of Income Tax Ordinance 2001 vested the
powers to CBR in order to formulate the IT rule 2002?
Section 206
Section 213
Section 237
Section 238
Question No: 9 ( Marks: 1 ) - Please choose one
Under which of the following conditions a tax payer can adopt a special tax year?
Whenever he decides so
After seeking approval from Tax Office
After seeking approval from Commissioner of income tax
After seeking approval from High Court
Mr Ali is an employee of ABC Co. the company has provided a driver and a
gardener to Mr. Ali. What will be the treatment of their salaries as per Income
Tax Ordinance 2001?
The salaried paid to them added in the salary of MR. Ali
The salaried paid to them subtracted in the salary of MR. Ali
Have no relation with salary of Mr. Ali
The Salaried paid are exempted from Tax
Any salary received by an employee of a foreign government for services rendered to
such government shall be exempt from tax under which section of IT Ordinance 2001?
► Section 40
► Section 43
► Section 47
► Section 53
Rental income shall be Pakistan-source income if it is derived from:
► The lease of immovable Property in Pakistan
► The lease of immovable Property outside Pakistan
► The lease of immovable Property both in and out of Pakistan
► None of the given options
If the accounting year of a business engaged in cotton ginning is started from 01
September 2003 and ending on 31st August 2004. What will be its tax year?
► Tax year 2002
► Tax year 2003
► Tax year 2004
► Tax year 2005
Which part of Income Tax Ordinance 2001 deals with the Exemptions and Tax
Concessions?
► Part IV
► Part V
► Part VI
► Part VII
Which of the following incomes are treated as agriculture income?
► Spontaneous forests
► Agro based industry
► Interest received by a farmer on lending
► Income from land in Pakistan used for agriculture
Salary income received by resident person from Federal Government of Pakistan in UK
belongs to which of the following?
► Pakistani source of IncomeP#28
► Foreign source of income
► Both Pakistan and foreign source of income
► None of the given option
Which of the following was the First law on Income Tax promulgated in
Pakistan?
1st July, 1979
1st July, 1969
1st July, 1949
1st July, 2002
What will be the tax treatment of any income chargeable under the head Salary
earned by an individual outside Pakistan during that year?
Wholly Taxable
Wholly Exempt
Partly Exempt
Not mention in Ordinance
SUBJECTIVE
Mr. Irfan resident of Pakistan received salary from UK. He has also paid tax on his salary from UK as per the tax laws revailing there. What will be the tax treatment of his salary as a Pakistani resident? Which section of the income tax ordinance
deals this scenario?
Answer Foreign-Source Salary Income [102]
Mr. Irfan’s salary from UK would be exempted from tax, because he has paid tax on his salary from UK. Under Foreign-Source Salary Income [section102] foreign source salary income of a resident individual will be exempt from tax, if he has paid foreign income tax in respect of such income. Payment of foreign tax means that the employer has deducted the tax at source and deposited the same to the revenue authorities of the country in which employment was exercised.
Q2: profit on debt in which conditions will be Pakistan source
of income.
1. Resident person (25) page
2-Non Resident Person (25) page.
Answer
Profit on debt shall be Pakistan-source income if it is-
(1) Paid by a resident person, except where the profit is payable in respect of any debt used for the purposes of a business carried on by the resident outside Pakistan through a permanent establishment; or
(2) Borne by a permanent establishment in Pakistan of a non-resident person.
3) Explain the two terms with their relevant sections (5 marks)
Resident individual (page 23,26,27)
Resident AOP(27,36,)
Answer
Resident Individual (Section 82)
• An individual shall be a resident individual for a tax year if the individual:
• is present in Pakistan for a period of, or periods amounting in aggregate to, one hundred and [eighty-three] days or more in the tax year; or
• is an employee or official of the Federal Government or a Provincial Government posted abroad in the tax year.
Resident Association of Persons Sec. 84
An association of persons shall be a resident association of persons for a tax year if the control and management of the affairs of the association is situated wholly or partly in Pakistan at any time in the year.
Fin630 VU Midterm Current Paper (May 2011)
ONLY 5 MCQ'S FROM PAST PAPERS
AND ONLY 1 SUBJECTIVE QUESTION FROM PAST PAPERS
Q: A company is paying $0.60 in dividends and the required rate of return is
6%. Company is selling the stocks at $ 12. Assume 2% growth rate. Figure out
the current value of the stock. By keeping in view your answer. Explain
whether the stock is overvalued or undervalued.
AND ONLY 1 SUBJECTIVE QUESTION FROM PAST PAPERS
Q: A company is paying $0.60 in dividends and the required rate of return is
6%. Company is selling the stocks at $ 12. Assume 2% growth rate. Figure out
the current value of the stock. By keeping in view your answer. Explain
whether the stock is overvalued or undervalued.
Fin630 VU Midterm Current Paper (May 2011)
investment analysis
MCQ 10 from paper and remaining are new one
long question
cooking the book 3mark
wht is purpose of income statement 3 mark
why income statement is important in fundamental analysis 5mark
a change in economy can quick changes in stock market..
MCQ 10 from paper and remaining are new one
long question
cooking the book 3mark
wht is purpose of income statement 3 mark
why income statement is important in fundamental analysis 5mark
a change in economy can quick changes in stock market..
Fin630 VU Midterm Current Paper (May 2011)
What is the purpose of Industry analysis (Marks 5)
Is Income statement important in fundamental analysis? (Marks 5)
What is the purpose of income statement? (Marks 3)
Why Industry analysis is difficult? (Marks 3)
Paper # 01
Fin 630 current paper attempted by me 16-05-2011
Subjective portion from past papers but some MCQ are new
1. The notion that one dollar received today is more valuable than one dollar received
tomorrow is usually called
· Liability
· Equity
· Time value of money
· Present value
2. Operating, investing and financing activities are activities of
· Cash flow statement
· Income statement
· Balance sheet
· Statement retained earning
3. All are the following are cash flow statement activities except
· Operating
· Investing
· Payable
· Financing
Subjective portion
29. What is the purpose of income statement? (3)
Answer: The income statement shows how the business makes its money. You can see the revenues and expenses. All of the financial statements of a business relate to each other. It's for the benefit of investors, creditors, employees, shareholders, etc.
30. Why P/E ratios tend to be high when interest rate and inflation is low? (3)
Answer: P/E ratios tend to be high when inflation and interest rates are low because when earnings are growing and the upward profit trend appears to be sustainable; investors are willing to pay, more for today’s earnings. P/E ratios and interest rates are indirectly related
31. Differentiate value fund and growth fund (5)
Answer: A growth fund invests in companies with fast growth. Fast growth also means higher risk. Thus fund managers are willing to pay premiums to acquire the stock. Companies in the fund can sizzle for a few months or years but quickly fizzle. When companies fizzle like crocs or growth is no longer present, fund managers must sell. This usually involves higher fund expense fees. So check them out in the funds prospectus.
Value funds invest primarily in stocks that the market overlooks. These stocks are priced below their earning potential. These stocks are usually held for long periods before any gains are seen. Do expect low to stable returns and a low expense ratio.
32. A company is paying $0.60 in dividends and the required rate of return is
6%.Company is selling the stocks at $12. Assume 2% growth rate. Figure out the
current value of the stock. By keeping in view your answer Explain whether the
stock is overvalued or undervalued. (5)
Solution:
P0 = D0 (1+G)/R-G
=.60(1+.02)/ (.06 – .02) = 15.3
P0 = 15.3
Stock price 12 is undervalued.
Paper # 02
Objective from the past papers
Subjective is as under
29. What is meant by NAV? (3)
Answer: The value of a share of the mutual fund, known as the Net Asset Value (NAV), is calculated daily based on the total value of the fund divided by the number of shares purchased by investors.
30. Forget it
31. Differentiate value fund and growth fund (5)
Answer: A growth fund invests in companies with fast growth. Fast growth also means higher risk. Thus fund managers are willing to pay premiums to acquire the stock. Companies in the fund can sizzle for a few months or years but quickly fizzle. When companies fizzle like crocs or growth is no longer present, fund managers must sell. This usually involves higher fund expense fees. So check them out in the funds prospectus.
Value funds invest primarily in stocks that the market overlooks. These stocks are priced below their earning potential. These stocks are usually held for long periods before any gains are seen. Do expect low to stable returns and a low expense ratio.
32. A company is paying $0.60 in dividends and the required rate of return is 6%.Company is selling the stocks at $12. Assume 2% growth rate. Figure out the current value of the stock. By keeping in view your answer Explain whether the
stock is overvalued or undervalued. (5)
Solution:
P0 = D0 (1+G)/R-G
=.60(1+.02)/ (.06 – .02) = 15.3
P0 = 15.3
Stock price 12 is undervalued.
Paper # 03
Objective from the past papers
Subjective Portion
29. Outline the rationale for sector rotation? (3)
Answer: This strategy involves shifting sector weights in the portfolio in order to take advantage of those sectors that are expected to do relatively better and avoid or deemphasize those sectors that are expected to do relatively worse. Investors employing this strategy are betting that particular sectors will repeat their price performance relative to the current phase of the business and credit cycle.
Benefit from sectors expected to perform relatively well and de-emphasize se cores expected to perform poorly
30. Describe the various sources of information available at the Library? (3)
Answer:
Resources at the Library
• Economic financial Newspapers.
• Standard & Poor’s Publications.
• Mergent / Moody’s Publications.
They are competitors and their services largely duplicate each other. Standard &
Poor’s and Moody’s publish easy-to-use reference material that can be found in most public libraries.
Company Information:
• Annual Reports.
• SEC Filings.( Securities and Exchange Commission)
• The Prospectus.
• Objective.
31. keeping in view the business cycle, describe which industries are most affective
to change in the economy? Give two examples. (5)
Answer:
Growth industries:
– Earnings expected to be significantly above the average of all industries.
• Growth stocks suffer less during a recession.
Defensive industries:
– Least affected by recessions and economic adversity.
Cyclical industries:
– Most affected by recessions and economic adversity.
– “Bought to be sold”.
– Counter-cyclical industries exist as well.
Interest-sensitive industries:
– Particularly sensitive to expectations about changes in interest rates.
• Careful analysis of business cycle and likely movements in interest rates help make better buy/sell decisions.
32. Define short selling and describe the procedure of short selling in detail. (5)
Answer:
Selling Short: SS
A short sale involves borrowing securities, selling them to someone else, eventually purchasing similar shares from someone else, and delivering these substitute shares to the original lender.
Short sellers sell first and buy later
The short seller has an eventual obligation to replace the borrowed shares.
Short sellers must pay any dividends to the person from whom the stock was borrowed.
There are regulatory constraints in different parts of the world where may be short selling is not allowed. Locally short selling is not permitted in the regular market but short selling is permitted in the future market
Paper # 04
Objective from the past papers
Subjective portion
29. Explain two components of required rate of return? (3)
Answer: Required rate of return is the sum of two components: the expected dividend yield on the stock and the expected growth rate. If the dividend yield is a constant, g represents the anticipated capital a ppreciation in the stock price.
Dividend Yield: A financial ratio that shows how much a company pays out in dividends each year relative to its share price.
Dividend Yield = Annual Dividends / Current Market Share Price
30. Outline the rationale for sector rotation? (3)
Answer: This strategy involves shifting sector weights in the portfolio in order to take advantage of those sectors that are expected to do relatively better and avoid or deemphasize those sectors that are expected to do relatively worse. Investors employing this strategy are betting that particular sectors will repeat their price performance relative to the current phase of the business and credit cycle.
Benefit from sectors expected to perform relatively well and de-emphasize se cores expected to perform poorly
31. Liquidity ratios (5)
32. Stock price vs. (Forget = 5)
Paper # 05
Q. Describe top-down valuation? marks 3
Answer
• Analyze economy-stock market industries individual companies.
– Need to understand economic factors that affect stock prices initially.
– Use valuation models applied to the overall market and consider how to forecast market changes.
– Stock market’s likely direction is of extreme importance to investors.
– Should also take a global perspective because of linkages.
Question no: 30 ( marks: 5 )
1. What is meant by NAT (Net Asset Value)? (Marks 3)
Q) Why is industry analysis valuable?
Answer
To summarize there are two reasons why industry analysis is important. 1. Generally the performance of a company is a function of the performance of the industry. For example if raw material in a particular industry has gone up then all the companies in the industry will get affected. 2. Psychological reasons. If an industry suddenly gets in vogue or if a sudden change in the news is perceived to be good or bad for an industry the price of the stock will be affected mainly from what the average investor believes and most investors will follow industry trends.
Question no: 32 ( marks: 5 )
Differentiate between income stocks and penny stocks.
Answer
Income Stock:
By law dividend must be paid out of the company’s earning they cannot be paid from borrowed funds. The bottom line profit a firm makes is its net income after taxes (NIAT). The firm’s board of directors may pay a dividend from the amount if they believe it to be in the shareholder’s best interest. NIAT may be retained in it’s entirely within the firm the entire amount may be paid out of more typically a portion of these earnings might be retained and a portion paid out. The proportion of NIAT paid as a dividend in the firm’s payout ratio. Income stocks are those that have historically paid a larger than average percentage of their NIAT as dividend to their shareholders.
Penny Stocks:
Penny stocks fall into a catch all category that refers to unusually risky especially in expensive share. Shares that sell for less than dollar 1 each would be considered penny stocks.
HRM628 VU Midterm Current Paper (May 2011)
Question: 1
Internal networks exits in an organization in certain conditions. Discuss those circumstances.
(Marks 3)
Question: 2
What is the purpose of employee assistance programs?
(Marks 3)
Question: 3
Employee involvement interaction can increase productivity through improving capabilities. Discuss
(Marks 3)
Question: 4
The fourth phase of Grid OD is “Developing an ideal strategic organization Model”. The key people in the organization work toward achieving that model by incorporation some basic factors. What are those factors?
(Marks 5)
Question: 5
To diagnose the culture of an organization, the behavioral approach provides specific descriptions about how tasks are performed and how relationships are managed in an organization. What are those relationships exits in an organization and what are managerial tasks performed by manger?
(Marks 5)
Internal networks exits in an organization in certain conditions. Discuss those circumstances.
(Marks 3)
Question: 2
What is the purpose of employee assistance programs?
(Marks 3)
Question: 3
Employee involvement interaction can increase productivity through improving capabilities. Discuss
(Marks 3)
Question: 4
The fourth phase of Grid OD is “Developing an ideal strategic organization Model”. The key people in the organization work toward achieving that model by incorporation some basic factors. What are those factors?
(Marks 5)
Question: 5
To diagnose the culture of an organization, the behavioral approach provides specific descriptions about how tasks are performed and how relationships are managed in an organization. What are those relationships exits in an organization and what are managerial tasks performed by manger?
(Marks 5)
HRM624 VU Midterm Current Paper (May 2011)
How can communication be made more effective? Suggest ways.
Perceptual bias
1Q is related to the conflict resolution
Five reasons that compel a person for revenge?
Three situations of low level of trust?
Perceptual bias
1Q is related to the conflict resolution
Five reasons that compel a person for revenge?
Three situations of low level of trust?
MCM 516 VU Midterm Current Paper (May 2011)
Total 27 question’s 22 mcq’s and 5 subjective questions
How and why the investigative reports are important in media briefly explain?
What do you know about news caster of electronic media?
Briefly explain different types of microphone according a technique?
Briefly discus about timeliness and proximity?
What is Electronic field production (EFP)?
MGMT629 VU Midterm Current Paper (May 2011)
22 MCQ
1 Q was related to complex system (3 marks)
2.Decision making is a tedious process and it involves manifold abilities. Particularly, in the context of the crises management it involves many challenging factors.discuss 3 factors briefly (3 marks)
3.for a crisis manger why it is necessary to have the knowledge of research skills? (3 marks)
4.how skills of creative thinking can be acquire? describe its components (5 marks)
5.what is field research? what are its advantages? (5 marks)
Mgt201 VU Midterm Current Paper (May 2011)
Subjective questions MGT 201 on 18 May 11
1. Suppose there are 2 stocks in your investment portfolio,
Value of investment Expected IRR
A
40
30
B
60
20
Total
100
Calculate the expected portfolio return
2. You want to start your business so you approach a bank. The bank offers you to lend you Rs.
10000 and you sign a bond paper. The bank asks you to issue a bond in their favor on the
following requirement by bank.
Par value = Rs, 100000
Maturity = 2 years
Coupon rate = 12% Mark up paid at the end of each year
For the bank
What is the value of investing in a bond with that bank has opportunity cost of 10%.
3. Why does diversification reduce risk?
4. What are the effects of changes in macro interest rates on the portfolios of the bonds?
All the mcqs were known as they were from previous papers,
1. Suppose there are 2 stocks in your investment portfolio,
Value of investment Expected IRR
A
40
30
B
60
20
Total
100
Calculate the expected portfolio return
2. You want to start your business so you approach a bank. The bank offers you to lend you Rs.
10000 and you sign a bond paper. The bank asks you to issue a bond in their favor on the
following requirement by bank.
Par value = Rs, 100000
Maturity = 2 years
Coupon rate = 12% Mark up paid at the end of each year
For the bank
What is the value of investing in a bond with that bank has opportunity cost of 10%.
3. Why does diversification reduce risk?
4. What are the effects of changes in macro interest rates on the portfolios of the bonds?
All the mcqs were known as they were from previous papers,
Mgt201 VU Midterm Current Paper (May 2011)
28 MCQs
29. What is the definition of Call provision. 3 Marks
30. A security analyst has estimated the following returns on the stocks of 4 large companies:
| | Weightage | Expected Returns |
| Company A | 25% | 12% |
| Company B | 25% | 11.5% |
| Company C | 25% | 10.% |
| Company D | 25% | 9.5% |
You are required to calculate the expected return on this portfolio.3 Marks
31. What are the types of bond? (any five) 5 Marks.
32. Define the Diversifiable Risk and Market Risk and Causes of Risk. 5 Marks
fin621 VU Midterm Current Paper (May 2011)
15 mcqz from old paper
and also subjective
Question No: 31 ( Marks: 5 )
Listed below in random order are the items to be included in the balance sheet of the
Mystery Mountain Lodge at December 31, 2001:
Equipment Rs. 29,200
Buildings Rs. 450,000
Land 425,000
Owner’s capital ?
Accounts payable 54,800
Cash 21,400
Accounts receivable 10,600
Furnishings 58,700
Salaries payable 33,500
Snowmobiles 15,400
Interest payable 12,000
Notes payable 620,000
Requirement:
Prepare a Balance Sheet at December 31, 2001.
Mystery Mountain Lodge
Balance sheet
As at Dec 31,2001
ASSETS LIABILITIES
Land 425,000 Owner’s capital 290,000
Building 450,000 current liabilities
Furnishings 58,700 account payable 54,800
Equipment 29,200 salaries payable 33,500
Current assets interest payable 12,000
Cash 21,400 notes payable 620,000
Account receivable 10,600
Snow mobiles 15,400
__________ __________
Total 1,010,300 1,010,300
4.Haris is trading In cranes. He has one crane which original cost is rs.60000, the accumulated depreciation is rs.48000, He purchase a new crane which cost is Rs. 75000 and he was given a trade allowance of rs.15000.
a) how much cash Haris will pay? Marks 2
Cost of new machine 75000
Trade in allowance 15000
_____________
Cash payment 60000
b) what would be the gain or loss if the first crane is disposed off? Marks.3
Cost of old crane 60000
Less accumulated deprecation 48000
------------
Book value of crane 12000
Trade in allowance 15000
----------
Profit on exchange 3000
question#1 (3)
A company acquired land by issueing 500,000 of capital stock.what will the transaction be disclosed in the company statenment of cash flows,if yes in which section.
Investment activities: purchase of land
Financing activities: issuance of capital stock
4 question
related to earning per share theoretical
Mgt301 VU Midterm Current Paper (May 2011)
Is there any difference in product and services. if yes please explain 3
What is marketing intelligence system 3
research data ka topic tha koi i think mrkting research 5
advantages and disadvantages of micro marketing 5
What is marketing intelligence system 3
research data ka topic tha koi i think mrkting research 5
advantages and disadvantages of micro marketing 5
Mgt411 VU Midterm Current Paper (May 2011)
no mcq's from past papers
sab new thay
y stocks r risky?5 mrks
bond biz is right or wrong give xplntn?3mrs
sab new thay
y stocks r risky?5 mrks
bond biz is right or wrong give xplntn?3mrs
Mgt411 VU Midterm Current Paper (May 2011)
Total 32 Question 28 mcqs 99 percent from past papers Subjective are as following
Difference between yield to maturity & current yield 3 marks
Numerical question about price policy calculation 03 marks
A have bond of ABC Corporation will A bond affected on it return by tax explain
have bond of Government will Bond affected on it return by tax explain 5 marks
numerical question about value of coupon bond 05 marks
Difference between yield to maturity & current yield 3 marks
Numerical question about price policy calculation 03 marks
A have bond of ABC Corporation will A bond affected on it return by tax explain
have bond of Government will Bond affected on it return by tax explain 5 marks
numerical question about value of coupon bond 05 marks
Mgt411 VU Midterm Current Paper (May 2011)
28 Mcqz
4 Long Questions
1. Discuss Risk Has Value?? 3 marks
2. Discuss Bond Risk?? 3 marks
3. Discuss bubbles in detail?? 5 marks
4. What is Adverse Selection in market. Discuss in detail? 5 marks
4 Long Questions
1. Discuss Risk Has Value?? 3 marks
2. Discuss Bond Risk?? 3 marks
3. Discuss bubbles in detail?? 5 marks
4. What is Adverse Selection in market. Discuss in detail? 5 marks
Mgt501 VU Midterm Current Paper (May 2011)
28 MCQ's (24 from Past Papers 4 were New)
2 Questions of 3 Marks
2 Questions of 5 Marks
1) In Selection, What comes after Interview (3)
2) Job Description of CEO (3)
3) Diff b/w Zero Rated Forecasting & Bottom Up Forecasting (5)
4) Snap Judgement and how to avoid it ? (5)
2 Questions of 3 Marks
2 Questions of 5 Marks
1) In Selection, What comes after Interview (3)
2) Job Description of CEO (3)
3) Diff b/w Zero Rated Forecasting & Bottom Up Forecasting (5)
4) Snap Judgement and how to avoid it ? (5)
Mgt501 VU Midterm Current Paper (May 2011)
HRM exam attempted today 19 may, 2011
1- A disabled student (paralyzed from both legs) seeks admission in medical college and the management of the college refused to give admission to the student on the basis of disabled person. Is it a discrimination act? 5
2- describe snap judgment in your own words and how interviewer avoid from this. 5
3- how to reduce work force diversity 3
1- A disabled student (paralyzed from both legs) seeks admission in medical college and the management of the college refused to give admission to the student on the basis of disabled person. Is it a discrimination act? 5
2- describe snap judgment in your own words and how interviewer avoid from this. 5
3- how to reduce work force diversity 3
Mgt501 VU Midterm Current Paper (May 2011)
Differentiate cumulative discount and non cumulative discount ( 3 marks )
Adversitment and promotional increase the life cycle of product ( 5 marks)
What is prmium pricing? why some customer are willing to pay more prices (5 marks)
Explain maturity stage ( 3 marks )
Qestion: How would you differentiate co-branding and family branding.
uestion: Which of the following 4P's of marketing mix involves decisions regarding channel coverage,
location, inventory and transport?
Question: Being the marketing manager of the Multinational Company you are going to take the new
product in the market. What should be your decision being the marketing manager by keeping in view the
entery s
Question: Decribe quality discount and its types.tage product?
Question: Decribe product type of all followings & give logical reasons to support your answer:
Furniture
Cars
Soap
Mango
Rice
Adversitment and promotional increase the life cycle of product ( 5 marks)
What is prmium pricing? why some customer are willing to pay more prices (5 marks)
Explain maturity stage ( 3 marks )
Qestion: How would you differentiate co-branding and family branding.
uestion: Which of the following 4P's of marketing mix involves decisions regarding channel coverage,
location, inventory and transport?
Question: Being the marketing manager of the Multinational Company you are going to take the new
product in the market. What should be your decision being the marketing manager by keeping in view the
entery s
Question: Decribe quality discount and its types.tage product?
Question: Decribe product type of all followings & give logical reasons to support your answer:
Furniture
Cars
Soap
Mango
Rice
Mgt501 VU Midterm Current Paper (May 2011)
26 mcq, 2 que 5 mark, 2 que 3 mark
What actions taken for maintain position in market? (5 mark
How do Background investigation? (5 mark
Describe recruitment factors? (5 mark
Define screening process? (3 mark
Is strength of employees is fewer then what should firm to do? (3 mark
What actions taken for maintain position in market? (5 mark
How do Background investigation? (5 mark
Describe recruitment factors? (5 mark
Define screening process? (3 mark
Is strength of employees is fewer then what should firm to do? (3 mark
Mgt501 VU Midterm Current Paper (May 2011)
total quiz 32.....
26 macqz n 4 were short quiz
1. List down the factors that can affect recruitment (3 marks)
2. Identify the information that can be considered as “red flag” while screening the applicants for selection (3marks)
3. During an interview, for the entry level managerial position if the interviewer asks you a question “what will you do if yours boss asks you to do something that is against your principle” then what would be your answer? (5marks)
4. Why job analysis is considered as an important human resource tool? What purpose does it serve?
26 macqz n 4 were short quiz
1. List down the factors that can affect recruitment (3 marks)
2. Identify the information that can be considered as “red flag” while screening the applicants for selection (3marks)
3. During an interview, for the entry level managerial position if the interviewer asks you a question “what will you do if yours boss asks you to do something that is against your principle” then what would be your answer? (5marks)
4. Why job analysis is considered as an important human resource tool? What purpose does it serve?
Mgt503 VU Midterm Current Paper (May 2011)
32 questions.....
28 mcqs 40% from old papers
2 questions of 3 marks.........
1.what are the possible ways to identify a problem?
2.how an organization can scan its mega environment?
2 questions of 5 marks.......
1.what is the difference between garbage can model n incremental model?
2.list the possible inputs of an organization?
28 mcqs 40% from old papers
2 questions of 3 marks.........
1.what are the possible ways to identify a problem?
2.how an organization can scan its mega environment?
2 questions of 5 marks.......
1.what is the difference between garbage can model n incremental model?
2.list the possible inputs of an organization?
Mgt510 VU Midterm Current Paper (May 2011)
1. Differentiate between continual and continuous improvement. (3 Marks)
2. Define Big Q and Little Q? (3 Marks)
3. What is cost of quality? Explain with examples (5 Marks)
4. Management Principles of ISO9000:2000? (5 Marks)
2. Define Big Q and Little Q? (3 Marks)
3. What is cost of quality? Explain with examples (5 Marks)
4. Management Principles of ISO9000:2000? (5 Marks)
Mgt601 VU Midterm Current Paper (May 2011)
TOTAL 27 QUESTIONS
22 MCQS
3 QUESTION OF 3 MARKS
2 QUESTION OF 5 MARKS
what kind of policy adopted by Uk when an entrepreneur or business faced force majure? 3 marks
what are the most frequent occurring problem that can be solved by short term loan ? 3 marks
how effective intellectuality property right policy of disingenuous product of country can be beneficial of that country 5 marks
good cas flow statement is actual indicator for determining the health of business help for the successful deal with bank what does good cash flow statement comprise 5 marks
22 MCQS
3 QUESTION OF 3 MARKS
2 QUESTION OF 5 MARKS
what kind of policy adopted by Uk when an entrepreneur or business faced force majure? 3 marks
what are the most frequent occurring problem that can be solved by short term loan ? 3 marks
how effective intellectuality property right policy of disingenuous product of country can be beneficial of that country 5 marks
good cas flow statement is actual indicator for determining the health of business help for the successful deal with bank what does good cash flow statement comprise 5 marks
Mgt603 VU Midterm Current Paper (May 2011)
benifits of IEF 3 marks
Benifits of vertical intigration 3 marks
benifits of MIS in Decision making process 5 marks
benifits of Merger and Acquasation 5 marks...
Benifits of vertical intigration 3 marks
benifits of MIS in Decision making process 5 marks
benifits of Merger and Acquasation 5 marks...
Mgt603 VU Midterm Current Paper (May 2011)
In your opinion, what can be the circumstances when a Low Cost Producer in an industry brings effectiveness? ( 3 )
What is the role of financial ratios in internal audit?(5)
Planning function is mostly carried out by managers in strategy formulation stage. Whatactivities are performed under this function?( 3 )
what are intensive strategies, explain each with relevant example? (5 )
What is the role of financial ratios in internal audit?(5)
Planning function is mostly carried out by managers in strategy formulation stage. Whatactivities are performed under this function?( 3 )
what are intensive strategies, explain each with relevant example? (5 )
Mgt613 VU Midterm Current Paper (May 2011)
My subjective was not good all was mixed in my mind....here is my subjective...
Question No: 29 (Marks: 3)
What are the approaches that organization can adopt to change the job structure?
Question No: 30 (Marks: 3)
What are the key steps involved in formulating a capacity planning strategy?
Question No: 31 (Marks: 5)
Elaborate the advantages and disadvantages of concurrent engineering?
Question No: 32 (Marks: 5)
Suppose you are working as an operation manager in an automobile company. Your company wants to move its manufacturing plant from one location to other location.
What factors will affect the location decision according to your point of view?
Question No: 29 (Marks: 3)
What are the approaches that organization can adopt to change the job structure?
Question No: 30 (Marks: 3)
What are the key steps involved in formulating a capacity planning strategy?
Question No: 31 (Marks: 5)
Elaborate the advantages and disadvantages of concurrent engineering?
Question No: 32 (Marks: 5)
Suppose you are working as an operation manager in an automobile company. Your company wants to move its manufacturing plant from one location to other location.
What factors will affect the location decision according to your point of view?
Mgt613 VU Midterm Current Paper (May 2011)
Write down at least three ways of improving reliability of a system. 3 Marks
For what purpose the transportation method is used? 3 Marks
Elaborate some advantages and disadvantages of concurrent engineering? 5 Marks
Suppose you want to estimate the time required to perform a certain task by the two employees. One employee’s study yielded a mean of 6.4 minutes and standard deviation of 2.1 minutes with 95% confidence Interval. Other employee’s study yielded a mean of 2.1 minutes and standard deviation of 6.4 minutes with confidence interval of 95%. Now how many observations you will need if desired maximum error is 10% of sample mean? (z= 1.96) Do both the employees have same number of observations? 5 Marks
For what purpose the transportation method is used? 3 Marks
Elaborate some advantages and disadvantages of concurrent engineering? 5 Marks
Suppose you want to estimate the time required to perform a certain task by the two employees. One employee’s study yielded a mean of 6.4 minutes and standard deviation of 2.1 minutes with 95% confidence Interval. Other employee’s study yielded a mean of 2.1 minutes and standard deviation of 6.4 minutes with confidence interval of 95%. Now how many observations you will need if desired maximum error is 10% of sample mean? (z= 1.96) Do both the employees have same number of observations? 5 Marks
Mgt613 VU Midterm Current Paper (May 2011)
Question No: 30 ( Marks: 3 )
What approaches an organization can adopt to change the job structure
What approaches an organization can adopt to change the job structure
Question No: 31 ( Marks: 5 )
Emphasize the importance of layout design
Question No: 32 ( Marks: 5)
Good product/ service design plays a strategic role in helping an organization to achieve its goals. Please discuss 5
Question No: 33 ( Marks: 5 )
Which factors to keep in mind while changing product design?
Question No: 34 ( Marks: 5 )
Keep in mind the significant equipment while design the facilitate layout plans in your company? Factor
Emphasize the importance of layout design
Question No: 32 ( Marks: 5)
Good product/ service design plays a strategic role in helping an organization to achieve its goals. Please discuss 5
Question No: 33 ( Marks: 5 )
Which factors to keep in mind while changing product design?
Question No: 34 ( Marks: 5 )
Keep in mind the significant equipment while design the facilitate layout plans in your company? Factor
Mgt613 VU Midterm Current Paper (May 2011)
subjective was from past n currnt papers which is uploaded here,
but onle 7 objectives were from past papers,
well subjctive is here...
Elaborate some advantages and disadvantages of concurrent engineering??
Suppose you are the operations manager of ABC Corporation. To develop competence in business operations, you have to decide either to rely on the facilities available in-house or outsource. What are some of the factors you would base the decision on?
Suppose you are the operations manager of a manufacturing firm, why would you perceive concurrent engineering as a suitable approach with reference to product design?
What is meant by capacity flexibility and how it can be achieved?
but onle 7 objectives were from past papers,
well subjctive is here...
Elaborate some advantages and disadvantages of concurrent engineering??
Suppose you are the operations manager of ABC Corporation. To develop competence in business operations, you have to decide either to rely on the facilities available in-house or outsource. What are some of the factors you would base the decision on?
Suppose you are the operations manager of a manufacturing firm, why would you perceive concurrent engineering as a suitable approach with reference to product design?
What is meant by capacity flexibility and how it can be achieved?
Mgt613 VU Midterm Current Paper (May 2011)
Write down at least three ways of improving reliability of a system. 3
Following are some of the techniques used to improve the reliability of the system;
· Testing: for error free final product
· Educating the user: educate the user about working of the product through operating manuals
· Research and Development will definitely aid to increase the reliability of the system
For what purpose the transportation method is used? 3
Following are some of the techniques used to improve the reliability of the system;
· Testing: for error free final product
· Educating the user: educate the user about working of the product through operating manuals
· Research and Development will definitely aid to increase the reliability of the system
For what purpose the transportation method is used? 3
Transportation Method is a quantitative technique that can help solve the problem of multiple facility location. It determines the cost effective pattern to allocate resources when products are shipped from two or more plants. It may not solve all the problems related to multiple facility location but finds the best shipping patterns.
What are some of the reasons that do not favor the use of process layout? 5
Following are some of the reasons that do not favor the use of process layout.
· In-process inventory costs can be high.
· Material handling in this technique is slow and inefficient.
· Span of control can be reduced due to complexities of process layout.
· Difficult routing and scheduling.
· Utilization rate of equipments is very low
What is a modular design? What is its role in operations management? 5
Modular design is a form of standardization in which components are sub-divided into small independent modules which are designed easily and can also be interchanged.
ROLE IN OPERATIONS MANAGEMENT
· It adds flexibility to both production and marketing.
· Easier repair and diagnosis.
· Quick and easy recovery if a components fails to work.
· Simplification of manufacturing and assembly.
Examples of products that use modular design may be microprocessors, cars etc.
What are some of the reasons that do not favor the use of process layout? 5
Following are some of the reasons that do not favor the use of process layout.
· In-process inventory costs can be high.
· Material handling in this technique is slow and inefficient.
· Span of control can be reduced due to complexities of process layout.
· Difficult routing and scheduling.
· Utilization rate of equipments is very low
What is a modular design? What is its role in operations management? 5
Modular design is a form of standardization in which components are sub-divided into small independent modules which are designed easily and can also be interchanged.
ROLE IN OPERATIONS MANAGEMENT
· It adds flexibility to both production and marketing.
· Easier repair and diagnosis.
· Quick and easy recovery if a components fails to work.
· Simplification of manufacturing and assembly.
Examples of products that use modular design may be microprocessors, cars etc.
Mgt613 VU Midterm Current Paper (May 2011)
Question No: 41 ( Marks: 5 )
Suppose you are working as an operation manager in an automobile company. Your company wants to move its manufacturing plant from one location to other location. What factors will affect the location decision according to your point of view? location decision
Answer
Write one or two line on these points in your own words
such as
· transportation costs
· distance to market
· labor supply
· energy sources
· room for expansion
Question No: 42 ( Marks: 5 )
Calculate the exponential smoothing forecasts from the following data for the 6th
period with constant(alpha) 0.40.
Period No. of complaints
1 60
2 65
3 55
4 58
5 64
Answer
1 60 #N/A
2 65 60 =60+0.4*(60-60)
3 55 63 =65+0.4*(60-65)
4 58 58.2 =55+0.4*(63-55)
5 64 58.08 =58+0.4*(58.2-58)
Question No: 41 ( Marks: 5 )
Operations management does not work in isolation within an organization.
How would you relate marketing, finance and other functions to operations function?
Answer
Please try to extract from the following according to you need
FINANCE
The finance function comprises activities related to securing resources at favorable prices
and allocating those resources throughout the organization. Finance and operations
management personnel cooperate by exchanging information and expertise in such activities as:
Budgeting
Economic analysis of investment proposals
Provision of funds.
MARKETING
Marketing’s focus is on selling and/or promoting the goods or services of an organization. Marketing is also responsible for assessing customer wants and needs, and for communicating those to operations people (short term) and to design people (long term). That is, operations needs information about demand over the short to intermediate term so that it can plan accordingly (e.g., purchase materials or schedule work), while design people need information that relates to improving current products and services and designing new ones. Marketing, design, and production must work closely to successfully implement design changes and to develop and produce new products. Marketing can provide valuable insight on what competitors are doing
There are a host of other supporting functions that interface with operations. Among them
are accounting and purchasing. Also, depending on the nature of the organization, they
may include personnel or human resources, product design and development, industrial
engineering, and maintenance
Question No: 43 ( Marks: 5 )
Which process system would you suggest for the following business/industry?
French restaurants
Heavy equipment
Sugar refinery
Automobile assembly
Commercial printer
Answer
Commercial printer and French restaurants are examples of job shop.
Automobile assembly uses an assembly line structure (product layout),
while sugar refinery uses continuous flow structure.
Heavy equipment = batch flow process structure
In some organizations capacity planning takes place very regularly and in some it takes place seldom. What are the factors that influence the frequency of capacity planning?
Generally, the factors that influence the frequency of capacity planning are the stability of demand, the rate of technological change in equipment plus
product design, and competitive factors
It also depend upon the product or service and whether style changes are important or not. suppose automobiles does not need much changes compare to clothing or fashion products.
Some products need frequent changes to meet the market trends.
Suppose you are working as an operation manager in an automobile company. Your company wants to move its manufacturing plant from one location to other location. What factors will affect the location decision according to your point of view? location decision
Answer
Write one or two line on these points in your own words
such as
· transportation costs
· distance to market
· labor supply
· energy sources
· room for expansion
Question No: 42 ( Marks: 5 )
Calculate the exponential smoothing forecasts from the following data for the 6th
period with constant(alpha) 0.40.
Period No. of complaints
1 60
2 65
3 55
4 58
5 64
Answer
1 60 #N/A
2 65 60 =60+0.4*(60-60)
3 55 63 =65+0.4*(60-65)
4 58 58.2 =55+0.4*(63-55)
5 64 58.08 =58+0.4*(58.2-58)
Question No: 41 ( Marks: 5 )
Operations management does not work in isolation within an organization.
How would you relate marketing, finance and other functions to operations function?
Answer
Please try to extract from the following according to you need
FINANCE
The finance function comprises activities related to securing resources at favorable prices
and allocating those resources throughout the organization. Finance and operations
management personnel cooperate by exchanging information and expertise in such activities as:
Budgeting
Economic analysis of investment proposals
Provision of funds.
MARKETING
Marketing’s focus is on selling and/or promoting the goods or services of an organization. Marketing is also responsible for assessing customer wants and needs, and for communicating those to operations people (short term) and to design people (long term). That is, operations needs information about demand over the short to intermediate term so that it can plan accordingly (e.g., purchase materials or schedule work), while design people need information that relates to improving current products and services and designing new ones. Marketing, design, and production must work closely to successfully implement design changes and to develop and produce new products. Marketing can provide valuable insight on what competitors are doing
There are a host of other supporting functions that interface with operations. Among them
are accounting and purchasing. Also, depending on the nature of the organization, they
may include personnel or human resources, product design and development, industrial
engineering, and maintenance
Question No: 43 ( Marks: 5 )
Which process system would you suggest for the following business/industry?
French restaurants
Heavy equipment
Sugar refinery
Automobile assembly
Commercial printer
Answer
Commercial printer and French restaurants are examples of job shop.
Automobile assembly uses an assembly line structure (product layout),
while sugar refinery uses continuous flow structure.
Heavy equipment = batch flow process structure
In some organizations capacity planning takes place very regularly and in some it takes place seldom. What are the factors that influence the frequency of capacity planning?
Generally, the factors that influence the frequency of capacity planning are the stability of demand, the rate of technological change in equipment plus
product design, and competitive factors
It also depend upon the product or service and whether style changes are important or not. suppose automobiles does not need much changes compare to clothing or fashion products.
Some products need frequent changes to meet the market trends.
Mgt613 VU Midterm Current Paper (May 2011)
1- Suppose you are the operation managers of a manufacturing firm, why would you perceive concurrent engineering as a suitable approach with reference to product design Marks 3
2- How does automation help in production setting Marks 3
3- Why we should Emphasize on the importance of layout decision Marks 5
4- Define Moduler Design Marks 5
2- How does automation help in production setting Marks 3
3- Why we should Emphasize on the importance of layout decision Marks 5
4- Define Moduler Design Marks 5
Mkt501 VU Midterm Current Paper (May 2011)
difne the signs of decline stage marks 3
Decline stage
• Costs become counter-optimal
• Sales volume decline
• Prices, profitability diminish
Diff between comulative discount and non camulative discount marks 3
•Cumulative quantity discounts (also called accumulation discounts). These are price reductions based on the quantity purchased over a set period of time. The expectation is that they will impose an implied
Switching cost and thereby bonds the purchaser to the seller.
•Non-cumulative quantity discounts. These are price reductions based on the quantity of a single order. The expectation is that they will encourage larger orders, thus reducing billing, order filling, shipping, and sales personal expenses.
Explain packaging and label 5 marks
PACKAGING AND LABELING
Packaging is the enclosing of a physical object, typically a product that will be offered for sale. Labeling refers to any written or graphic communications on the packaging or on a separate label
Explain the importance of price in marketing mix 5 marks
PRICE
PRICE
“In economics and business, the price is the assigned numerical monetary value of a good, service or asset”. The concept of price is central to microeconomics where it is one of the most important variables in resource allocation theory (also called price theory)
BREFILY DESCRIBE ADVANTAGES OF TEST MARKET?
A test market, in the field of business and marketing, is a geographic region or demographic group used to gauge the viability of a product or service in the mass market prior to a wide scale roll-out. The criteria used to judge the acceptability of a test market region or group includes:
DESCRIBE DISADVANTAGES OF PENETRATING PRICING STRATEGY?
The main disadvantage with penetration pricing is that it establishes long term price expectations for the product, and image preconceptions for the brand and company. This makes it difficult to eventually raise prices..
WHAT TYPE OF DISCOUNT TRADE IS GIVEN BY THE COMPANY TO THE DISTRIBUTOR AND RETAIERS?
List any five characteristics of brand name? 5 marks
List any five characteristics of brand name? 5 marks
A good brand name should:
• Be legally protectable
• Be easy to Pronounce
• Be easy to Remember
• Be easy to Recognize
• Attract Attention
• Suggest product Benefits (e.g.: Easy-Off) or suggest usage
• Suggest the company or product Image
• Distinguish the product's Positioning relative to the competition.
Explain concept testing? 3 marks
Concept testing is the process of using quantitative methods and qualitative methods to evaluate consumer response to a product idea prior to the introduction of a product to the market. It can also be used to generate communication designed to alter consumer attitudes toward existing products.
Why do companies use discounts and allowances? 3 marks
DISCOUNTS AND ALLOWANCES
“Discounts and allowances are reductions to a basic price”.
They could modify either the manufacturer's list price (determined by the manufacturer and often printed on the package), the retail price (set by the retailer and often attached to the product with a sticker), or the list price (which is quoted to a potential buyer, usually in written form). The market price (also called effective price) is the amount actually paid.
The Purpose of Discounts is to
• Increase short-term sales,
• Move out-of-date stock,
• Reward valuable customers,
• Encourage distribution channel members to perform a function.
Some discounts and allowances are forms of Sales Promotion.
A case was related to conjoint analysis which I forget? 5 marks
Conjoint analysis, also called multi attribute compositional models, is a statistical technique that originated in mathematical psychology. Today it is used in many of the social sciences and applied sciences including marketing, product management, and operations research. The objective of conjoint analysis is to determine what combination of a limited number of attributes is most preferred by respondents
Difference between white goods and brown goods? 3
Durable Goods: goods that survive multiple use occasions, often further subdivided into `white Goods (refrigerators and cookers, for example) and `brown goods' (such as furniture, as well as electrical/electronic devices) '
Benefits of discount and allowances for the company 3
DISCOUNTS AND ALLOWANCES
“Discounts and allowances are reductions to a basic price”.
They could modify either the manufacturer's list price (determined by the manufacturer and often printed on the package), the retail price (set by the retailer and often attached to the product with a sticker), or the list price (which is quoted to a potential buyer, usually in written form). The market price (also called effective price) is the amount actually paid.
The Purpose of Discounts is to
• Increase short-term sales,
• Move out-of-date stock,
• Reward valuable customers,
• Encourage distribution channel members to perform a function.
Some discounts and allowances are forms of Sales Promotion.
Why Packaging and labeling decision are important for company 5
THE PURPOSE OF PACKAGING AND LABELS
Packaging and labeling have five objectives:
•Physical protection of the object - The objects enclosed in the package can be protected from damage caused by physical force, rain, heat, sunlight, cold, pressure, airborne contamination, and automated handling devices.
•Agglomeration - Small objects are typically grouped together in one package for reasons of efficiency. For example, a single box of 1000 pencils requires less physical handling than 1000 single pencils. Alternatively, bulk commodities (such as salt) can be divided into packages that are a more suitable size for individual
Households.
•Information transmission - Information on how to use, transport, or dispose of the product is often contained on the package or label. An example is pharmaceutical products, where some types of information are required by governments.
•Marketing - The packaging and labels can be used by marketers to encourage potential buyers to purchase the product. Package design has been an important and constantly evolving phenomenon for dozens of years.
•Reducing theft - Some packages are made larger than they need to be so as to make theft more difficult. An example is software packages that typically contain only a single disc even though they are large enough to contain dozens of discs.
Why marketers charge Market premium.
However there are usually additional costs associated with the differentiating product features and this could require a premium pricing strategy.
(3Marks) Retailing is the dead end of product distribution. Explain it?
Ans:- Retailers are at the end of distribution chain as they sell to end users in this way they end the distribution of a product. They directly interact with the end users of the product and end the distribution process.
(5marks) What types of discounts are given by the company to the distributors and retailers
as trade promotion discounts?
Ans: Trade discounts (also called functional discounts) –
These are payments to distribution channel members for performing some function .
Examples of these functions are warehousing and shelf stocking. Trade discounts are often combined to include a series of functions, for example 20/12/5 could indicate a 20% discount for warehousing the product, an additional 12% discount for shipping the product, and an additional 5% discount for keeping the shelves stocked. Trade discounts are most frequent in industries where retailers hold the majority of the power in the distribution channel (referred to as channel captains).
(5Marks) Mandatory labeling is still a debatable issue yet in the labeling of product. What should you say to in favor of mandatory labeling?
Ans:- Mandatory labeling is the requirement of consumer products to state their ingredients or components. Moral purchasing and avoidance of health problems like allergies are two things which are enabled by labeling. It is mandated in most developed nations, and increasingly in developing nations, especially for food products. Mandatory labeling must be compulsory for eatables and medicines and new invented products so that user can know the side effects of the usage of the product and also some instructions that how to use the product.
Mkt501 VU Midterm Current Paper (May 2011)
1)Assumptions, pro-forma income statement, contribution margin analysis, breakeven analysis, ratios analysis must be very formally done in:
► Financial summary
2)Which product is MOST likely to be purchased through routine decision making?
► Soft drink
3)Which of the following price is quoted to a potential buyer, usually in written form?
► List price
4)Market-penetration pricing will likely to be used most in selling which of the following items?
► Convenience
5)Many companies try to set a price that will maximize current profit. This strategy assumes that company has knowledge of its:
► Revenue and cost function
6)Identify the other name for global market.
► Export market
7)Customer cost will be considered as which of the following Ps of marketing mix?
► Price
8)Which of the following products requires mass promotion by a producer?
► Unsought (page 9)
9)Identify the commercialization decision which includes decisions regarding locality, region, nationally or even internationally launching the product.
► Where to launch the product?
10)The concept of price is central to:
► Microeconomics
11)Which of the following marketing mix element generates revenue?
► Price
12)Which of the following is NOT included in the financial summary of a marketing plan?
► Month by month agenda
13)Which of the following brands cost more than other products in the category?
► Premium brand (page 36)
14)The existing strong brand name can be as a vehicle to launch new product in the other categories. What does this statement imply?
► Brand extension (page 37)
15)While writing the marketing plan, the analysis of environmental factors like supply chain, Government and legal etc, comes under which of the following section of marketing plan?
► Macro environment (page 15)
16)The “convenience goods” in the industrial market are:
► Operating supplies
17)These objectives are often the most suitable when firms operate in a market dominated by a major competitor and where their financial resources are limited.
► NICHE
► Labeling (PAGE 6)
► The way business elements are combined to meet the needs of customers
► Revenue (page 21)
21)While writing the marketing plan, the analysis of company’s own resources comes under which of the following section of marketing plan? ► Internal environment analysis (page 15) 100%
► Extend the cycle as long as possible
23)The stage in the adoption process that has been reached when an individual becomes sufficiently involved with a new product to begin to seek information about it is called: ► Interest (page
24)A supermarket advertises sugar and coffee at very low prices with the objective of attracting customers who will buy other high profit items. This is called: ► loss leader
01:factors of new product?
02: co-branding and family branding?
03: price premium?
04:external idea source for new product?
02: co-branding and family branding?
03: price premium?
04:external idea source for new product?
Mkt621 VU Midterm Current Paper (May 2011)
MIDTERM EXAMINATION
Spring 2009-MKT621- Advertising & Promotion (Session - 3)
Question No: 1
Advertising is a most important ingredient of promotion mix that is:
Paid form of personal communication
Paid form of non personal communication
Non paid form of personal communication
Non paid form of non personal communication
Question No: 2
Which one of the following is the primary focus of advertising toward target audience?
Persuasion
Push the customer
Availability of a product
Infornmation of a new product
Question No: 3
If a beverage company says, “We probably become the leader of beverage industry in next year”. Which one of the following appeals company has used in this advertisement?
Puffery
Weasel claim
Shock ad
Poignant Declare
Question No: 4
Which of the following group of consumers prefer to purchase new and latest product while it is still expensive?
Innovators
Early adopters
Early majority
Laggards
Question No: 5
A product that is perceived as being of average quality by you may be perceived as being of high quality by your friend who has_______.
Higher expectations
Neutral expectations
Average expectations
Lower expectations
Question No: 6
Liana advertising agency (LAA) handles all aspects of the advertising process including planning, design, production, and placement services to its client “Xing Construction Company of China”. LLA is a ________________.
Creative agency
Full service agency
Composite agency
Media Independent agency
Question No: 7
Which one of the following is the process of establishing and maintaining a distinctive place in the customer's mind for an organization or its specific product?
Profiling
Targeting
Segmentation
Positioning
Question No: 8
Which one of the following sections of an ad copy provides the main text portion of advertising message?
Illustration
Body Copy
Art design
Standing Details
Question No: 9
Which of the following refers to potential audience might be exposed to the advertising message?
Reach
Frequency
Scheduling
Coverage
Question No: 10
Which one of the following methods can be used to determine the advertising budget?
Competitive parity method
Rating method
Gross percentage method
Ratio method
Question No: 11
Advertisement is communication between sponsor and audience meant for informing or reminding about the product. Which of the following is NOT serving the informing objective of advertisement?
Make consumers aware of new product
Announcing a new price of product
Explaining how a product works
Products are still available for sale
Question No: 12
Which post-campaign test is carried out by “Aided” and “Unaided” techniques?
Inquiry Test
Sales Test
Recall Test
Recognition Test
Question No: 13
Which of the following tools is/are the ingredient/s of promotional mix?
Advertising
Personal selling
Public relations
All of the given options
Question No: 14
Which one of the following is NOT a component of innovation adoption model?
Interest
Evaluation
Trial
Retention
Question No: 15
RACE is a problem-solving strategy and it stands for:
Research, Action, Communication, Evaluation
Research, Awareness, Communication, Evaluation
Resource, Awareness, Communication, Evaluation
Resource, Action, Communication, Evaluation
Question No: 16
Which one of the following is NOT a synonym of Target Audience?
Focus group
Target customer
Disbeliever customers
Target market
Question No: 17
Which one of the following tools is used to decide 'Advertising Reach'?
Net Program Rating
Target Rating Scale
Net Rating Scale
Gross Rating Point
Question No: 18
All of the following are the different types of advertising theme, EXCEPT:
Utilitarian
Focused
Informative
Research
Question No: 19
Which one of the following defines the decoding process?
Intensity of the transmission becomes stronger
Receiver attempts to convert signs into concepts and ideas
Source provides clue to convert signs into concepts and ideas
Receiver filters noise from the feedback
Question No: 20
If we hear an advertisement on radio regarding a new product in the market, then radio will serve as______.
Receiver
Transmitter
Decoder
Source
Question No: 21
Which section of an advertisement copy provides information about the company's office address?
Headline
Body copy
Signature
Standing detail
Question No: 22
All of the following are the responsibilities of a copywriter in advertising agency EXCEPT:
Writing clear, persuasive and original copy
Carefully proof reading copy to check spellings & grammar
Keeping up to date with popular culture & trends
Deciding about media for placing an advertisement
Question No: 23
All of the following can be part of a creative team for creating an advertisement in an advertising agency, EXCEPT:
Copywriter
Art Director
Creative Director
Media Director
Question No: 24
All of the following are the types of newspaper advertising, EXCEPT:
Classified advertising
Retail advertising
National advertising
Institutional advertising
Question No: 25
Which one of the following is an advantage to advertise in a newspaper?
All of the given options
Flexibility
Low Cost per advertisement
Coverage in remote areas
Question No: 26
All of the following are the disadvantages of a newspaper with respect to advertising,
EXCEPT:
High waste circulation
Short life span of information
Range of market coverage
No Audience selection
Question No: 27
A printing error in a newspaper advertisement is an example of:
Feedback
Noise
Message loop
Carelessness
Question No: 28
Which one of the following factors makes advertising successful over personal selling?
Limit target area
Cost per Target Audience
Mass Media Communication
Personal Communication
Question No: 29
At which stage in the product lifecycle, the sales growth starts to slow down.
Decline stage
Growth stage
Introduction
Maturity stage
Question No: 30
Which of the following advertising agencies offers both creative & media services with research to its clients?
Creative agency
Full Service agency
A Composite agency
Media Independent agency
Question No: 31
( Marks: 5 )
Advertisements have various objectives, sometimes other than just selling products.
Explain what are its other objectives for an organization?
Question No: 32
( Marks: 10 )
Your aim of life is to join an advertising agency as a ‘copywriter’. In your point of view
who can join an ad-agency as a copywriter and how a copywriter works in an advertising
agency?
Phy101 VU Midterm Current Paper (May 2011)
Total Qs = 27
Total MCQs = 22
MCQs mostly related from lect 2 to 6 & 11 to 15
Q1 . Scenario given & find the disease and its problem.5/-
Q2 . Limitation of nature n nuture.3/-
Q3 . phi phenemenon 3/-
Q4. chemical of neuron 3/-
Total MCQs = 22
MCQs mostly related from lect 2 to 6 & 11 to 15
Q1 . Scenario given & find the disease and its problem.5/-
Q2 . Limitation of nature n nuture.3/-
Q3 . phi phenemenon 3/-
Q4. chemical of neuron 3/-
STA301 VU Midterm Current Paper (May 2011)
If pare of dice are rolled what is probability of get Total of 10 and Total of 9. 2 marks
Define Simple and compound sample 2 marks
Write down the empirical relationship between Mean, Median and Mode 3 marks
Describe Statistic, perimeter and also tell what is Classification mean? Marks 3
In Equation Y = a +b x what is Y, a, b, x? 5 marks
Two coins are tossed draw a sample space and also tell the probability of:
• 2 Heads
• At least 1 head
• 1 tail
• At least 2 tails 5 marks
Define Simple and compound sample 2 marks
Write down the empirical relationship between Mean, Median and Mode 3 marks
Describe Statistic, perimeter and also tell what is Classification mean? Marks 3
In Equation Y = a +b x what is Y, a, b, x? 5 marks
Two coins are tossed draw a sample space and also tell the probability of:
• 2 Heads
• At least 1 head
• 1 tail
• At least 2 tails 5 marks
STA301 VU Midterm Current Paper (May 2011)
What is meant by sample point 2 marks?
Differ between Combination and permutation 2 marks
Differentiate between absolute dispersion and relative dispersion and what is dispersion 3
Describe descriptive and infraction statistics 3 marks
Data was given Found Harmonic mean, and Geometric mean 5 marks
Find Slop Bxy from given data 5 marks
Differ between Combination and permutation 2 marks
Differentiate between absolute dispersion and relative dispersion and what is dispersion 3
Describe descriptive and infraction statistics 3 marks
Data was given Found Harmonic mean, and Geometric mean 5 marks
Find Slop Bxy from given data 5 marks
