MCQ for CA Final SFM - Chapter 1 Security Analysis

Sample Multiple Choice Questions (MCQ's) for CA Final - Paper 2 - Strategic Financial Management - Chapter 1: Security Analysis - For Practice relevant for May/Nov 23 Examinations

 

Q:1 Technical analysis is based on the following principals 

 

1. The market discounts everything
2. Price moves in trends.
3. History tends to repeat itself
4. All the above

Answer: 4

 

Q:2 Point out the buy/sell signal in the following cases:

Stock price line rise through the moving average line when graph of the moving average line is flattering out.

 

1. Buy signal
2. Sell signal
3. do nothing
4. none of these

Answer: 1

 

Q:3 Point out the buy/sell signal in the following cases:

Stock price line rises above moving average line which is falling

 

1. buy signal
2. sell signal

Answer: 2

 

Q:4 Point out the buy/sell signal in the following cases:

Stock price line which is slow moving average line rises but begins to fall again before reaching the moving average line

 

1. buy signal
2. sell signal

Answer: 2

 

Q:5 Closing values of NSE Nifty from 6th to 17th day of the month of January of the year 2020 were as follows:

 

Days	Date	Day	Sensex
1	6	THU	14522
2	7	FRI	14925
3	8	SAT	No Trading
4	9	SUN	No Trading
5	10	MON	15222
6	11	TUE	16000
7	12	WED	16400
8	13	THU	17000
9	14	FRI	No Trading
10	15	SAT	No Trading
11	16	SUN	No Trading
12	17	MON	18000

 

Calculate Exponential Moving Average (EMA) of Sensex during the above period. The previous day exponential moving average of Sensex can be assumed as 15,000. The value of exponent for 31 days EMA is 0.062. 

Based on the above information answer ques 5 - 8:-

 

1. 15000
2. 14970.364
3. 14967.55
4. 14925

Answer: 3

 

Q:6  Share of X Ltd. is expected to be sold at`36 with a dividend of`6 after one year. If required rate of return is 20% then what will be the share price?

 

1. 30
2. 40
3. 45
4. 35

Answer: 4

 

Q:7 FCFE =?

 

1. FCFE = Net Profit -  depreciation -∆NWC- CAPEX + New Debt - Debt Repayment + Net issue of Preference Shares – Preference Share Dividends
2. FCFE = Net Profit + depreciation -∆NWC- CAPEX - New Debt - Debt Repayment + Net issue of Preference Shares – Preference Share Dividends
3. FCFE = Net Profit + depreciation -∆NWC- CAPEX + New Debt - Debt Repayment + Net issue of Preference Shares – Preference Share Dividends
4. FCFE = Net Profit + depreciation -∆NWC- CAPEX + New Debt - Debt Repayment + Net issue of Preference Shares – Equity Share Dividends

Answer: 3

 

Q:8 A company has a book value per share of`137.80. Its return on equity is 15% and it follows a policy of retaining 60% of its earnings. If the Opportunity Cost of Capital is 18%, compute the price of the share today using Dividend Growth Model

 

1. 90.8
2. 91.89
3. 90.19
4. 89.99

Answer: 2

 

CA Final - Paper 2 - SFM - Chapter 2   

 

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