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NISM Series-XV: Research Analyst Certification

Research Analyst - Feel Real Exam - 6

The number of attempts remaining is 10

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1. The Current Ratio of a company is 2 and the Quick Ratio is 1. The total current assets are Rs 80000. Calculate the Inventory of this company?

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2. A business has total assets of Rs 50,00,000, and the Earnings Per Share is Rs 0.50. The Net Income is Rs 1,80,000. The Price to Earnings ratio is 18, and the Price to Book Value ratio is 1.25. Calculate the Asset to Equity ratio.

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3. A company has 200,000 shares. The Price to Book Value ratio of this company is 7, and the Book Value is 5. Calculate the Net Worth of the company.

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4. What is the advantage of Merger and Acquisition activity?

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5. The telecom industry does not face any threat of substitutes - State True or False ?

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6. Business risk is also known as operating risk because this risk is caused by factors that affect the operations of the company. State True or False?

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7. Calculate the Capital Employed of a company if the net worth is Rs 7,00,000 and debt in the balance sheet is Rs 4,00,000, and the market capitalization is Rs 25,00,000.

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8. Which section of the research report is likely to include the analyst's opinion?

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9. Mark to Market (MTM) margin is the notional ___________ which an outstanding trade has during a specified period on account of price movements.

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10. Country’s dependence on other countries in terms of important natural resources, monetary policies of the Central Banker, balance of payment positions, and forex reserves, etc. are part of ___________ in PESTLE Analysis.

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11. __________ summarizes revenues and costs/expenses over a period of time.

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12. In a company, if the total liabilities are Rs 8,000, and the total assets are Rs 20,000, calculate the Equity to Asset ratio.

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13. Can a company that has defaulted on its payment of interest on the Fixed Deposits it has be eligible for a Share Buyback?

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14. Covers Banks, Insurance, Financial Services provided by various government agencies and private corporations.

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15. Analysis and decision making, the two imperative parameters involved in are affected by which of the following factors?

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16. The Debt to Equity Ratio of a company is 1.5:1. The total size of its Balance Sheet is Rs 50 Lakhs. Calculate the Equity of the company.

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17. Rahul invests Rs. 75000 at the rate of 6% p.a. Calculate the future value of his investments after 10 years.

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18. A research analyst has prepared a research report on a company listed on the NSE. He too wishes to buy this stock. Can he buy this stock and if Yes, when?

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19. The Debt to Equity Ratio of a company is 2:1. The total size of its Balance Sheet is Rs 2,700,000. Calculate the Debt of the company.

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20. Focus of microeconomics is on factors that influence aggregate supply and demand in an economy such as unemployment rates, gross domestic product (GDP), overall price levels, inflation, savings rate, investment rate, etc. State whether True or False.

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21. A Depository Participant (DP) is an agent of _______.

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22. Nestlé’s Nescafe is an example of pricing power as prices keep going up but volumes don’t fall - State True or False?

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23. In a particular industry, the four major companies have a total revenue of Rs. 2100 crores and they control 70% of the market. The balance 30% is in the hands of the unorganised sector. With this data, find out the approximate market size of this industry.

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24. A company has sales of Rs 12400 and from this, they have an operating profit of Rs 2400. If the corporate tax is at 35%, calculate the net profit margin of the company (There is no interest expense)

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25. Investors look for businesses with entry barriers.

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26. The objective(s) of all the regulators in a financial market is/are:

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27. During a slowdown in economies, unemployment rate _______.

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28. Speculation is _____________ calls made with leveraged funds, unlike investing money which is a _________ disciplined activity for creating wealth.

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29. In which analysis, the performance, structure, and conduct of an industry are considered?

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30. An investor bought 500 shares of a company for a total sum of Rs. 10,000. The face value of these shares is Rs 5. Calculate the dividend yield on the value invested in these shares if the company declares 100% dividend.

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31. Which of these data is not easily available for research?

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32. The Discounted Cash Flow (DCF) model can be used only when three things are known with certainty - Stream of future cash flows, timings of these cash flows, and discount rate - State True or False?

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33. The sales of M/s. Prima Industries are 200% of EBIT. The Net Profit margin is 30%. Calculate the EBIT % of Net Profit.

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34. A rise in National Income will surely lead to a rise in the standard of living of its citizens.

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35. A share is currently trading at Rs 40.50 with a PE ratio of 13.50. The company has a policy of 70% dividend payout ratio. Calculate the dividend per share.

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36. The Balance Sheet of a company contains:

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37. The certificate of registration granted to a Research Analyst under regulation 9 is valid for five years. State True or False?

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38. Most of the businesses are price takers and not price makers as there is competition in the market. State True or False?

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39. In the case of Stock Consolidation, per share data witnesses immediate improvement.

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40. Buy-side Analysts work for firms that provide investment banking, broking, advisory services for clients. State True or False?

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41. Which committee is responsible for reviewing the financial statements of the company and for nominating the auditors?

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42. In an ___________ the acquiring company acquires all or a substantial portion of the stock of the target company and both entities typically continue to exist after that.

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43. Calculate the Enterprise Value based on the given information: Market Capitalisation = 28 lakhs; Total Debt= 7 lakhs; Cash = 6 lakhs.

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44. A company has 14 million shares, currently trading at Rs 20. The company has assets worth Rs 100 million and liabilities of Rs 30 million. Calculate the Price to Book value ratio.

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45. Identify the factor(s) which contribute to economic recovery from a recession.

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46. Which of these can be considered as a 'Threat' in SWOT analysis of a company?

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47. Calculate the Market Price of a company's share from the following data: Total Assets: 50,00,000; Net Income: 4,00,000; Earning Per Share: 0.50; Price to Book Value (P/BV): 6; Return on Equity: 40%

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48. Mr. Singh purchases MF units at NAV Rs 11. After 400 days, he redeems it at NAV Rs 12.50. What is his compounded annual rate of return?

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49. A foreign investor has invested in the existing financial instruments of a country. This is known as:

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50. Return on Capital Employed can be calculated

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51. As per the SEBI standards of corporate governance, independent directors should constitute at least ____ of the board.

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52. Handles the matters relating to all the Direct and Indirect Taxes through two statutory Boards, namely, the Central Board of Direct Taxes (CBDT) and the Central Board of Excise and Customs (CBEC).

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53. The work of a research analyst can be hampered by

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54. SEBI has been appointed under the Companies Act to register companies in India and to ensure that they comply with the provisions of the law - State True or False?

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55. The views mentioned in a research report should be consistent with the views of:

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56. Which of the following is considered as an economic factor in PESTLE analysis?

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57. In Structure Conduct Performance (SCP) Analysis, industry structure refers to ______.

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58. The net profit of a company for the year was Rs 300 crores. It had 4,72,60,223 outstanding equity shares. The current price of the equity share is Rs 718. Find the P/E ratio of the share.

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59. Fundamental analysis includes which of the following?

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60. If imports are more than exports, then the country will have a:

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61. Editing a research report includes the following EXCEPT

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62. Which of these financial instruments do not have a default risk?

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63. Which of these factors will be studied by a fundamental research analyst?

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64. Which of these data is not easily available for research?

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65. FDI leads to job destruction in the economy. State True or False?

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66. SEBI also deals with all matters relating to the promotion and orderly growth of pension markets in India - State True or False?

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67. Business Risk k is an Unsystematic Risk - State True or False?

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68. Inventory Turn Over Ratio measures the ability of the company to satisfy its short-term obligations - State True or False?

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69. The Central Board of Direct Taxes (CBDT) and the Central Board of Excise and Customs (CBEC) are controlled by the ___________, which comes under the Ministry of Finance.

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70. In ________ bias, investors look for evidence of some other investors buying specific securities.

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71. A warrant is a relatively ___________ to buy ___________ at a specified exercise price over a specified period of time.

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72. The current stock price of ABC Software Ltd is Rs 1200. Its Profit After Tax (PAT) is Rs 68,00,000. The number of outstanding shares are 100000. Calculate the P/E Ratio

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73. If the government of a country changes its expansionary fiscal policy to a contractionary fiscal policy, the equity markets are likely to go ______.

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74. The credit risk in all exchange-traded markets is taken care of by the Stock Exchange in which the trade has taken place - State True or False ?

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75. There could be different modes of servicing customers at different times, but these products/services will never be out of business. Which country has one of the lowest Average Revenue Per Unit (ARPU) in the world?

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76. RBI announces a hike in interest rates. In reaction, the Bond prices will generally

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77. The sales of Jupiter Trading Co Ltd. were Rs 750,000 and the cost of goods sold were 25% of sales. Operating Expenses and Depreciation were Rs 233,000. The Interest expenses were Rs 140,000. Calculate the Net Income if the company pays 25% of its pretax income as tax.

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78. Which section in the Cash Flow statement will provide the information about the amount of funds that a company borrowed during the preceding year?

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79. The EBIT of a company is Rs 400,000, and the EBIT % is 40% of the business. What is the Net Profit of the company if the Net Profit margin is 10%?

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80. Corporate actions like Bonus Issue, Stock Split, and Share Consolidation will lead to changes in per share data.

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81. Disclosing the allocation of money raised from investors in an IPO/FPO is the job of the Compliance Officer. State True or False?

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82. Sometimes, Bottom-up analysts focus purely on the dynamics of business and industry with little or no attention to economic factors. State True or False?

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83. The Total Assets of a company are Rs 124,000, and the Total Liabilities are Rs 79,000. Calculate the Equity to Asset Ratio.

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84. Good knowledge of valuation techniques is sufficient to arrive at a fair valuation on an asset - State True or False?

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85. Which of the following statements about the limitation of the quantitative approach to fundamental analysis is correct?

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86. Dividend Payout Ratio is calculated by dividing the company's dividend per share by earnings per share.

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87. In the process of valuation of a business, the growth rate is calculated by adding the retention rate and the return on equity - State True or False?

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88. ________ regulates the money market segment of the securities market and is also the manager of the Indian Government's borrowing program.

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89. Identify the approach to determine the bonus payable to a research analyst as per regulation 17 of Code of Conduct for research analyst.

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90. __________ is often used during a merger or acquisition of a company when acquiring company uses its own stock as cash to purchase the business.

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91. If an investor is not able to sell their investment when desired, or it has to be sold below its intrinsic value, or there are high costs to carrying out transactions, then this risk is called

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92. Indian Depository Receipts are issued in India and are listed on any world Stock Exchange with foreign stocks as underlying shares - State True or False ?

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93. In the Pioneering Stage of a business life cycle,

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94. Macroeconomics helps us understand the general state of the economy, including domestic production, domestic consumption, general price levels, growth, and quality of life. State True or False?

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95. A Company has a PE ratio of 25. Calculate the PEG ratio if the potential growth rate of the company is 20% for the next few years.

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96. Weighted Average Cost of Capital (WACC) formula is stated as True or False?

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97. The Net Profit of a company is Rs 12,00,000 and the Market Capitalization is Rs 60,00,000. Calculate the Earnings Yield.

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98. Investors can earn both rent on their property and a return on their capital invested - State True or False?

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99. Stock Split leads to a decrease in the wealth of shareholders - State True or False?

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100. A Rights Issue is open for subscription for a minimum period of

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