Research Analyst – Feel Real Exam – 2

The third essential element in technical analysis is the time span. It considers the duration over which price and volume are observed, incorporating the impact of long-term factors that influence prices over time.

Regulation No. 3 of the Securities and Exchange Board of India (Research Analyst) Regulations, 2014, deals with the application process for obtaining a certificate as a research analyst. It outlines the requirements and procedures for individuals to become registered research analysts and provide research services to investors.

When a company distributes earnings to its shareholders, it can do so in the form of cash dividend, stock dividend, or bonus shares. In this case, the specific term used to refer to the earnings paid to shareholders is "Cash Dividend." Cash dividends are distributed in the form of cash payments to shareholders, usually through bank transfers. Stock dividends refer to additional shares given to shareholders based on their holdings, while bonus shares are additional shares issued by capitalizing revenue reserves.

Contractionary fiscal policy - When the government uses excess income to repay debts or acquire assets. Expansionary fiscal policy - When the government's spending exceeds its income. Usually undertaken during recessions/slow-moving economy. Neutral fiscal policy – When the government's income and expenditure are in equilibrium. No major changes required in the fiscal policies.

Callable bonds are a safer option for issuers in a decreasing interest rate scenario.

In Structure Conduct Performance (SCP) Analysis, while analyzing the conduct of an industry, analysts primarily focus on the behavior, actions, and strategies of firms in that industry. They examine factors like market structure, pricing strategies, and competitive behavior. Numerical ratios such as Return on Equity (ROE) and Return on Capital Employed (ROCE) are more relevant when analyzing the performance of an industry. Therefore, "False."

Delisting of shares refers to the permanent removal of a company's shares from being listed on a stock exchange. Compulsory delisting occurs when a company fails to comply with the regulations and clauses of the listing agreement set by the stock exchange. Therefore, "non-compliance to regulations of the stock exchange."

Predicting absolutely random events based on past occurrences or creating trends where none exist is known as the gambler's fallacy. It is a cognitive bias that can lead to flawed decision-making and inaccurate predictions.

Expenditure is funded by the Government through multiple ways, including taxation, interest, dividend income, borrowings, and sale of assets, among others.

The unique parameter for evaluation of the Banking Sector is its Net Interest Income (NII)/ Net Interest Margin (NIM)

The Discounted Cash Flow method values a business by finding the inflows over outflows (called Free Cash Flows - FCFs) at different points in time and bringing them to today (finding the present value - PV) at an appropriate rate of return (Discount Rate - DR).

The registration certificates are issued to intermediaries by SEBI under the SEBI (Intermediaries) Regulations, 2008. These regulations outline the requirements and procedures for intermediaries operating in the securities market.

OTC markets are where trades are directly negotiated between two or more counterparties. There is no Stock Exchange or any other Exchange involved. In this type of market, the securities are traded and settled over the counter among the counterparties directly. For example, an exporter selling US Dollars to a bank.

The Insurance Regulatory and Development Authority (IRD defines all of the above aspects for insurance companies. It sets guidelines for the investment of funds, establishes capital and net worth requirements, and formulates rules for the distribution of insurance products.

In technical analysis, the point at which the price of a stock or index reaches a peak is known as the resistance level. It represents a price level where selling pressure may overcome buying pressure, causing the price to reverse or consolidate.

An industry is considered attractive to invest in if it has low competition, high barriers to entry, weak bargaining power of buyers, and other favorable characteristics. These factors can contribute to strong pricing power and high profit margins in the industry, making it attractive for investors.

Discounted cash flow is a valuation method used to estimate the attractiveness of an investment opportunity. DCF analysis uses future free cash flow projections and discounts them to arrive at a present value, which is used to evaluate the potential for investment. The DCF approach is most appropriate when three things are known with certainty: the stream of future cash flows, the timings of these cash flows, and the expected rate of return by the investors called the discount rate.

The pricing of products and services in the market primarily depends on the dynamics of demand and supply. The balance between the two factors influences the market equilibrium price, which determines the pricing strategies of businesses.

In options, the buyers have the RIGHT but NO OBLIGATIONS. The writers (sellers) have the obligations. The Call writer has the obligation to sell/give delivery of the asset to the Call Buyer at a predetermined price. The Put writer has the obligation to buy/take delivery of the asset from the Put Buyer at a predetermined price.

When shares are split, the face value of the share goes down. A stock split increases the number of shares outstanding while proportionally reducing the face value per share.

A stock split leads to both a boost in the liquidity of shares and the division of shares into multiple shares. However, it does not directly result in an increase in the wealth of shareholders. The total market value of the shares remains the same, but the number of shares increases, reducing the price per share.

While preparing a research report, analysts consider multiple key elements. These include ensuring the quality of data organization, interpreting the data accurately, and maintaining clarity in communication. Therefore, "All of the above."

In exceptional situations where Price Sensitive Information (PSI) is leaked, the compliance officer should be informed. The compliance officer plays a crucial role in ensuring regulatory compliance within the organization.

The regulators in the Indian Financial Market ensure that the market participants behave in a responsible manner so that the securities market continues to be a major source of finance for corporate and government, and the interest of investors is protected.

Policies relating to pollution control, waste disposal, mining, and protection of natural flora and fauna, as well as the rehabilitation of displaced local residents, are issues related to Environmental Factors in PESTLE analysis.

Delisting of shares refers to the permanent removal of the shares of a company from being listed on a stock exchange. It can be either compulsory, due to non-compliance with regulations, or voluntary, when a company chooses to delist its shares and go private.

To clarify, given that the dividend declared is 30% of Rs 5, we can calculate the dividend per share as follows:

Dividend per Share = Dividend Declared Percentage * Face Value
Dividend per Share = 0.30 * Rs 5
Dividend per Share = Rs 1.5

Next, to calculate the dividend payout ratio, we use the formula:

Dividend Payout Ratio = Yearly Dividend per Share / Earnings per Share

Given that the dividend payout ratio is 40%, we can substitute the values:

0.40 = Rs 1.5 / EPS

Solving for EPS, we have:

EPS = Rs 1.5 / 0.40
EPS = Rs 3.75

Moving on, to calculate the price-to-earnings (P/E) ratio, we use the formula:

P/E Ratio = Market Price per Share / Earnings per Share

Given that the market price per share is Rs 60, we can substitute the values:

P/E Ratio = Rs 60 / Rs 3.75
P/E Ratio = 16

Finally, to calculate the earnings yield, we use the formula:

Earnings Yield = Earnings per Share / Market Price per Share * 100

Substituting the values, we have:

Earnings Yield = Rs 3.75 / Rs 60 * 100
Earnings Yield = 6.25%

Therefore, the earnings yield is 6.25% based on the given dividend information and market price.

Business valuation requires a forecast of the cash flows expected in the future. This can be done by applying the historical growth rate exhibited by the company or a rate estimated by the analysts based on their information and analysis. A more robust way is to look at the internal determinants of growth, namely, the proportion of earnings plowed back into the business and the return on equity that it is expected to earn.

High industry rivalry can occur when switching costs for customers are low or nonexistent, when companies in the industry are engaged in similar strategies to attract customers, and when there are many companies competing in the same business segment.

The Price to Earnings (P/E) ratio is calculated by dividing the market price of a stock by its earnings per share (EPS). It helps investors assess the valuation of a company's stock relative to its earnings and is commonly used in investment analysis.

Macroeconomics helps us understand the drivers of income, savings, investments, and employment in an economy. It focuses on the overall performance and behavior of the economy as a whole, including factors such as GDP, inflation, and employment rates.

To calculate the EBIT % of Net Profit, we first need to determine the EBIT (Earnings Before Interest and Taxes). In this scenario, the given information states that the sales are 300% of EBIT. Let's assume the sales are Rs. 100 for easy calculation.

1. Calculate EBIT:
EBIT = Sales / 3 = Rs. 100 / 3 = Rs. 33.33

2. Determine the Net Profit:
The Net Profit Margin is stated as 25% of the Sales. Therefore, the Net Profit is 25% of Rs. 100, which is Rs. 25.

3. Calculate the EBIT % of Net Profit:
EBIT % of Net Profit = (EBIT / Net Profit) x 100
= (Rs. 33.33 / Rs. 25) x 100
= 133.33%

So, in this case, the EBIT % of Net Profit is 133.33%.

Please note that in the calculations above, I assumed a sales value of Rs. 100 for easier understanding.

The Securities and Exchange Board of India (Research Analyst) Regulations, 2014, include provisions such as qualification and certification requirements for research analysts, the application process for obtaining a research analyst certificate, and capital adequacy requirements. These provisions aim to ensure objectivity, transparency, and reliability in security research and enhance investor protection.

Bond prices and interest rates usually move in the opposite direction. When interest rates rise, bond prices tend to fall, and vice versa. This is because bond prices are inversely related to yields.

To calculate the enterprise value, we follow these steps:

1. Determine the market price per share:
Given P/E ratio = 7 and EPS = Rs 5,
Market price per share = P/E ratio * EPS = 7 * Rs 5 = Rs 35.

2. Calculate the market capitalization:
The number of shares is calculated as the paid-up capital divided by the face value of shares. In this case, the number of shares is 160,000.
Market capitalization = Number of shares * Market price per share = 160,000 * Rs 35 = Rs 5,600,000.

3. Calculate the enterprise value:
Enterprise value is the sum of market capitalization, market value of debt, and cash and cash equivalents, with appropriate signs.
Since there is no market value of debt given in this case, it is considered as zero.
Enterprise value = Market capitalization + Market value of debt - Cash and cash equivalents
= Rs 5,600,000 + 0 - Rs 1,000,000
= Rs 4,600,000.

Therefore, the enterprise value is Rs 4,600,000.

Note: Please ensure that the values used for market value of debt and cash and cash equivalents are accurate and up to date for an actual calculation.

The statement is true. Securities prices can deviate from their fair values due to market participants' emotions, such as fear and greed. These emotions can lead to excessive buying or selling, causing prices to move away from their intrinsic values. The influence of emotions on market behavior is one of the reasons for price volatility and market inefficiency.

Moving Averages is a widely used indicator in technical analysis that helps smooth out price action by filtering out the "noise" from random day-to-day price fluctuations. By using moving averages, the impact of short-term price fluctuations can be reduced or eliminated.

Technical analysts observe the price charts, trends, volumes, support and resistance levels. For them, what has happened and what is happening is important to predict future prices. The company's performance, management views, etc., are not considered by technical analysts.

The healthcare industry is an example of an industry that typically does not face the threat of substitutes. While other industries like computers, automobiles, and telecom can have substitute products or services, healthcare services are often unique and essential, making substitutes less likely. Therefore, "Healthcare."

In industries where rivalry is high, such as aviation and telecom, innovation in products, customer service, and engagement initiatives becomes essential to gain a competitive edge and maintain market share.

The Department of Financial Services governs policies related to various aspects, including financial services provided by government agencies and private corporations, pension reforms, life insurance, and general insurance. It plays a vital role in formulating and implementing financial policies in these areas.

Participatory Notes (P Notes) are instruments issued by SEBI registered foreign portfolio investors (FPIs) to overseas investors. These notes allow overseas investors to invest in Indian stock markets without having to register themselves with SEBI. Therefore, "Participatory Notes (P Notes)."

ARPU is a key parameter in analyzing the Telecom sector. It is calculated by dividing the total revenue by the number of subscribers and indicates the average revenue generated per user. Higher ARPU is generally favorable for telecom companies.

When interest rates in the economy move up, the price of existing bonds tends to fall. However, Mr. A will still be able to redeem the bond on its face value upon maturity. The coupon rate of 8% is fixed and unaffected by changes in interest rates. While the market value of the bond may fluctuate due to interest rate movements, the issuer is still obligated to pay the bondholder the face value upon maturity. Therefore, Mr. A will receive the face value amount from the issuer at maturity.

Visuals play an important role in research reports, aiding the reader's understanding. Options like charts, exhibits, and graphs are all visual representations of data. However, formulas are not considered visuals as they represent mathematical equations and calculations. Therefore, "formulas."

A good businessman would always have cognizance of the risks in the business and its implications.

To find the values of Current Assets and Current Liabilities, we can use the given ratios and equations. Let's break down the steps:

1. Current Ratio: The current ratio is calculated by dividing Current Assets by Current Liabilities. In this case, the current ratio is 2, which means Current Assets are twice the value of Current Liabilities.

Current Assets / Current Liabilities = 2

Since we're given that the ratio is 2, we can express Current Assets as 2 times Current Liabilities.

Current Assets = 2 * Current Liabilities

2. Quick Ratio: The quick ratio is calculated by subtracting Inventories from Current Assets, and then dividing the result by Current Liabilities. In this case, the quick ratio is 1.5.

(Current Assets - Inventories) / Current Liabilities = 1.5

Since we know that Current Assets are twice the value of Current Liabilities, we can substitute Current Assets with 2 times Current Liabilities.

(2 * Current Liabilities - Inventories) / Current Liabilities = 1.5

Simplifying further:

2 - Inventories / Current Liabilities = 1.5

Rearranging the equation:

2 - 1.5 = Inventories / Current Liabilities

0.5 = Inventories / Current Liabilities

3. Solving for Current Liabilities: From the equation above, we know that Inventories divided by Current Liabilities is equal to 0.5. Multiplying both sides of the equation by Current Liabilities, we get:

0.5 * Current Liabilities = Inventories

Dividing both sides by 0.5:

Current Liabilities = Inventories / 0.5

Given that Inventories is 8,000, we can substitute the value:

Current Liabilities = 8,000 / 0.5

Current Liabilities = 16,000

4. Calculating Current Assets: We already know that Current Assets are twice the value of Current Liabilities. Substituting the value of Current Liabilities:

Current Assets = 2 * 16,000

Current Assets = 32,000

Therefore, the solution is:

Current Liabilities = Rs. 16,000
Current Assets = Rs. 32,000

These values satisfy the given ratios and equations.

Callable bonds allow the issuer to redeem the bonds prior to their original maturity date. This feature poses a risk for investors but is beneficial for the issuers. For example, an issuer may call back callable bonds with higher interest rates and issue new bonds at lower interest rates.

During a slowdown in economies, the unemployment rate rises as production falls and jobs are lost. During an expansion phase, the unemployment rate falls as more jobs are created and production increases.

When selecting a good money manager, it is essential to consider their performance track record and qualifications. These qualities reflect their expertise, experience, and ability to generate positive returns. While personal values and philosophy of life may influence their investment approach, they are not the sole determinants of their effectiveness as money managers.

An industry with weak buyers' bargaining power and low competition will have strong pricing power and high-profit margins. In such a scenario, the industry has the ability to set higher prices and earn substantial profits due to limited competition and weak negotiation power of buyers. Therefore, "strong pricing power and high-profit margins."

To calculate the Net Profit Margin, we divide the Net Profit by the Sales. In this case, we are given that the Net Profit is 18% of the Equity Capital, which amounts to 18% of Rs. 400,000, equal to Rs. 72,000.

Next, we divide the Net Profit by the Sales. However, the Sales value is not provided in the given information. Therefore, we cannot determine the exact Net Profit Margin.

However, if we assume that the Sales value is Rs. 1,000,000 (for ease of calculation), we can calculate the Net Profit Margin as follows:

Net Profit Margin = Net Profit / Sales
= Rs. 72,000 / Rs. 1,000,000
= 0.072

Multiplying by 100 to express the result as a percentage, we find that the Net Profit Margin is 7.2%.

Please note that this calculation assumes a Sales value of Rs. 1,000,000 for illustrative purposes.

Expansionary monetary policy is employed to stimulate the economy by increasing the money supply and reducing interest rates. By injecting more money into the system and lowering borrowing costs, this policy aims to encourage spending, investment, and economic growth. Conversely, contractionary policy aims to cool down an overheated economy by reducing the money supply and increasing interest rates.

The qualitative aspect of a business is important while investing because a business with great quality, including factors such as a strong management team, customer satisfaction, and efficient operations, is more likely to generate great profits in the long run.

A well-informed long-term investor should not be concerned about short-term fluctuations in the stock market. Long-term investors focus on the fundamental value and prospects of the companies they invest in, rather than short-term price movements. They understand that short-term market volatility is common and can be influenced by various factors unrelated to the underlying value of the investments. Therefore, the statement is false.

To calculate the compounded annual growth rate (CAGR) using Excel, you can use the formula =((End Price / Begin Price)^(1 / n) - 1) * 100.

In this case, let's assume the End Price is in cell A1, the Begin Price is in cell B1, and the time period (n) is 2. To calculate the CAGR, you can use the following formula:

=((A1 / B1)^(1 / 2) - 1) * 100

Make sure to replace A1 and B1 with the respective cell references in your Excel sheet.

For example, if the End Price is Rs. 27 and the Begin Price is Rs. 16, you can enter the formula in a cell and calculate the CAGR as follows:

=((27 / 16)^(1 / 2) - 1) * 100

The result will be approximately 29.88%.

Normal Solution- To calculate the compounded annual growth rate (CAGR), we use the formula:

CAGR = [(End Price / Begin Price)^(1/n) - 1] x 100

Given that the End Price is Rs. 27 and the Begin Price is Rs. 16, with a time period of two years (n = 2), we can substitute these values into the formula:

CAGR = [(27 / 16)^(1/2) - 1] x 100

Calculating the expression within the parentheses first:

(27 / 16)^(1/2) ≈ 1.2988

Subtracting 1 and multiplying by 100 gives us the CAGR as a percentage:

CAGR ≈ (1.2988 - 1) x 100
CAGR ≈ 29.88%

Therefore, the compounded annual growth rate (CAGR) for this investment is approximately 29.88%.

The policy stance usually undertaken during recessions/slow-moving economy and when the government's spending exceeds its income is known as Expansionary fiscal policy. Contractionary fiscal policy refers to fiscal measures when the government's spending is lower than its income. The excess income is used to repay debts/obligations or acquire assets.

Dividend is not declared as a percentage of the face value. The face value of a share remains constant and is not directly linked to the market price or affected by share splits. Additionally, equity shares and preference shares can have different face values. Therefore, "Dividend is not declared as a percentage of the face value."

Inflation risk is present when investments are earning less than the inflation rate. It means that the returns on investments are not keeping pace with the rate of inflation, resulting in a loss of purchasing power over time.

SEBI merged with the Forward Markets Commission (FMC) and took over its role, now regulating the commodities markets in India. It is the regulatory body that oversees regulating and promoting forward and futures trading in commodities.

Yield to Maturity (YTM) method takes into consideration all future cash flows coming from the bond and equates the present values of these cash flows to the prevailing market price of the bond. YTM assumes that the investor will hold the bond till maturity and that the coupons received periodically are reinvested for the remaining tenor of the bond at the same rate throughout the tenor.

A company may have a good product and good marketing, but to make the product reach the consumers, it needs a good distribution network. If the distributors, retailers, etc. are not happy (due to any reason), this product may not reach the consumers effectively. Therefore, "No."

In BCG Analysis, the segment in which the business is growing at a fast pace and the company has a large market share is known as "Stars." These segments represent high-growth opportunities for the company.

To handle the risk of default by the buyers and sellers, the clearing corporation charges various kinds of margins, most prominently, Initial margin and Mark to market (MTM) margins.

The certificate of registration granted under regulation 9 shall be valid until it is suspended or cancelled by the Board.

Consumers can exert a lot of pressure and dictate prices when there are a large number of sellers with similar products or services. In such a scenario, consumers have more bargaining power and can influence prices through their purchasing decisions.

Fair valuation of an asset involves considering various factors and can be arrived at using professional judgment, knowledge of the asset and its market, as well as experience in valuing similar assets. Therefore, "All of the above."

Depositories hold securities of investors in electronic form and maintain the ownership records.

In the Boston Consulting Group (BCG) matrix, a cash cow refers to a business or product that has a high market share in a slow-growing industry. Colgate, with its strong brand name, well-penetrated distribution channel, ready market, and strong balance sheet, is considered an example of a cash cow.

Shares under rights issues are generally offered at a discount to the prevailing market prices. If the price under a rights issue is higher than the market price of the stock, investors would be better off buying shares from the market without subscribing to the issue.

To clarify, given that EBIT is Rs 25,000, which represents 50% of the business's sales, we can calculate the total sales as follows:

Sales = EBIT / (EBIT margin as a decimal)
Sales = Rs 25,000 / 0.5
Sales = Rs 50,000

Now, given that the net profit margin is 15%, we can calculate the net profit by multiplying the sales by the net profit margin:

Net Profit = Sales * Net Profit Margin as a decimal
Net Profit = Rs 50,000 * 0.15
Net Profit = Rs 7,500

Therefore, the net profit is Rs 7,500 based on the given sales and net profit margin.

The current yield method of calculating bond yield does not take into account future cash flows from the bond. It is calculated by dividing the coupon payment by the current market price of the bond. While it provides a simple measure of yield, it does not consider the total return potential of the bond.

Visuals like graphs and charts are indeed more effective than numerical data in a research report. Visual representations can simplify complex data and make it easier for readers to understand trends, patterns, and relationships. Graphs and charts can provide a visual context that enhances the overall comprehension of the information presented. However, it is essential to use visuals appropriately and ensure they support the analysis and insights conveyed in the research report.

The credit risk in exchange traded markets is taken care of by the Clearing Corporation. The trades executed on the exchange are settled through the clearing corporation, which acts as a counterparty and guarantees the settlement of the trades to both buyers and sellers.

Inflation risk represents the risk that the money received on an investment may be worth less when adjusted for inflation. Inflation erodes the purchasing power of money over time, so investments that do not keep pace with inflation may result in a loss of real value.

TRUE

The primary role of a research analyst is to collect relevant data from various sources and analyze it to provide insights and recommendations for investment decisions. While they may assist clients in making investment decisions, the ultimate responsibility for decision-making lies with the clients.

Stock dividend or Bonus shares are additional shares given to the shareholders, without any consideration, in proportion to their holdings by capitalization of revenue reserves.

Investors look for businesses with HIGH entry barriers because such businesses will have good pricing power and can sell the products at a premium without fear of losing customers.

Market capitalization is calculated by multiplying the market price of a share by the number of outstanding shares. It represents the total market value of a publicly traded company's shares and is a key indicator of its size and worth in the market.

Callable bonds allow the issuer to redeem the bonds prior to their original maturity date. The calling feature is most prevalent when interest rates are expected to fall because the issuer can replace the existing high-cost bond with a new low-cost bond.

All of the mentioned economic factors are essential for an investor to assess and gain a comfort level about a country's economic situation. Monetary policies implemented by the Central Banker, such as interest rate policies and inflation targeting, can have a significant impact on the overall economy and financial markets. The balance of payment positions and forex reserves reflect a country's ability to meet its external financial obligations and maintain stability in its currency. Additionally, a country's dependence on other countries for important natural resources can impact its economic growth and geopolitical risks. Therefore, considering all these factors provides investors with a comprehensive understanding of a country's economic situation.

Anchoring bias refers to the tendency to hold on to old information that may no longer be relevant and make decisions based on that information. It can lead to biased decision-making, as new information is ignored or considered irrelevant.

Systematic risk or market risk refers to those risks that are applicable to the entire financial market or a wide range of investments.

When an investor makes an investment, they typically seek a combination of factors. They aim to achieve adequate returns on their investment, ensure the safety of their principal amount, and beat the impact of inflation. Therefore, "All of the above."

The balance sheet provides a summary of a company's assets and liabilities at a specific point in time. It helps in assessing the financial health and position of the company.

The value of the bond will be less than its face value. If the expected rate of return is higher than the coupon rate, the bond's value will be discounted to reflect the higher required return. This means the bond will trade at a discount to its face value.

The Price to Book Value ratio can be calculated using both the formulas mentioned. It compares the market price per share to the book value per share or the market capitalization to the book value of equity or net worth.

The market price per share is calculated using the P/E ratio and EPS. Then, the number of shares is determined by dividing the market capitalization by the market price per share. Finally, the net worth is calculated by multiplying the book value per share by the number of shares. Therefore, the net worth of the company is Rs 3,50,000.

The Price to Book Value Ratio (P/B) compares the market price of a company's stock to its book value per share. A low P/B ratio indicates that the assets of the company are available at a relatively cheap price compared to the market.

The market tends to reward disciplined investing and often penalizes emotional, unorganized, and speculative approaches. Therefore, "Disciplined."

The current yield of a bond is calculated by dividing the annual coupon payment by the current market price of the bond and expressing it as a percentage. Here's how you can calculate it:

1. Determine the annual coupon payment: Multiply the coupon rate (expressed as a decimal) by the face value of the bond. For example, if the coupon rate is 7.59% and the face value is Rs. 100, the annual coupon payment would be (0.0759 * 100) = Rs. 7.59.

2. Find the current market price of the bond: In this case, the bond is trading at Rs. 103.

3. Calculate the current yield: Divide the annual coupon payment by the current market price of the bond and multiply by 100 to get the percentage. Using the values from above, the current yield would be (7.59 / 103) * 100 ≈ 7.36%.

Therefore, the current yield of the bond is approximately 7.36%.

In a valuation exercise, when comparing the price with the value, an asset is considered overpriced if the price is higher than its value.

Macroeconomics helps in understanding the general state of the economy, which is influenced by factors such as general price levels, domestic consumption, and domestic production. Therefore, "All of the above."

Foreign portfolio investment (FPI) refers to investment in financial markets, such as equity or bonds, by foreign portfolio investors without any management participation.

None of the options (shareholding pattern, financial indicators, and revenue distribution among business segments) are included in the 'View-based section' of a research report. The 'View-based section' focuses on analysis, including company business, key strengths, key concerns, industry overview, and other subjective assessments, while the mentioned options are part of the fact-based section, which provides factual information and data.

The Securities and Exchange Board of India (Research Analyst) Regulations, 2014, do not apply to Investment Advisers and Fund Managers. These regulations mainly govern the registration and conduct of research analysts providing research services to investors. However, Investment Advisers and Fund Managers have their separate regulations and requirements that they need to comply with. Therefore, the statement "Both 1 and 2" is the correct answer.

A rights issue is open for subscription for a minimum period of 15 days and a maximum period of 30 days.

To calculate the net income, you provided the following information:

Sales: Rs 200,000
Cost of Goods Sold (COGS): 20% of Sales
Operating Expenses and Depreciation: Rs 56,000
Interest Expenses: Rs 23,000

Let's calculate the net income step by step:

1. Calculate the cost of goods sold (COGS):
COGS = 20% of Sales = 0.2 * Rs 200,000 = Rs 40,000

2. Calculate the total operating expenses and depreciation:
Total Operating Expenses and Depreciation = Rs 56,000

3. Calculate the total interest expenses:
Total Interest Expenses = Rs 23,000

4. Calculate the net income:
Net Income = Sales - COGS - Operating Expenses and Depreciation - Interest Expenses
Net Income = Rs 200,000 - Rs 40,000 - Rs 56,000 - Rs 23,000
Net Income = Rs 81,000

Therefore, the net income is Rs 81,000. Please note that there might be other factors or expenses not included in the given information that could affect the accurate calculation of net income.

When two companies combine to form a new company, and the previous companies cease to exist, it is referred to as a consolidation. In a consolidation, the merging companies come together to create a new entity, and the original companies are dissolved. This is different from a merger, where one company acquires another, but both entities may continue to exist. In an acquisition or takeover, one company acquires a substantial portion of the stock of another, but both entities may also continue to exist.