Question 1

Mr. Tiwari is the sole income earner in the family. Mrs. Tiwari is a homemaker. They are aged 40 and 36respectively Life expectancy for both of them is another 40 years. They have no children. Otherinformation you have is: Current investment portfolio Rs. 20 lakhs, Estimated final expenses Rs. 1 lakh,present annual expenses are of Rs. 4 lakhs (including Rs. 1 lakh of Mr. Tiwari's personal expenses), Mr.Tiwari's post tax income in hand is Rs. 3.5 lakhs. Assume a post tax and post inflation rate is 4%.Calculate the insurance requirement under the Needs Based Method?

Options :

A : Rs. 43 Lakhs

B : Rs. 42 Lakhs

C : Rs. 62 Lakhs

D : Rs. 51 Lakhs

Answer: D

Question 2

The current dividend on an equity share of MAGADH Limited is Rs. 8.00 on earnings per share of Rs. 30.00. Assume that the growth rate of 15 per cent will decline linearly over a five year period and then stabilize at 10 per cent. What is the intrinsic value of MAGADH 's share if the investors' required rate of return is 15 per cent?

Options :

A : Rs. 196/-

B : Rs. 183/-

C : Rs. 116/-

D : Rs. 269/-

Answer: D

Question 3

For claiming exemption u/s 546, the assessee shall acquire the new asset within

Options :

A : 2 years from the date of transfer

B : 3 years from the date of transfer

C : One year before or 2 years after the date of transfer

D : One year before or 3 years from the date of transfer

Answer: C

Question 4

The principle of ensures that an insured does not profit by insuring with multiple insurers

Options :

A : Subrogation

B : Contribution

C : insurance

D : Indemnity

Answer: B

Question 5

What are the advantages of 100% book building?

Options :

A : Marketing of issue to wholesale bidders work out cheaper

B : Issue can be completed in single stage

C : Time lag between pricing and listing is less

D : All of the above

Answer: D

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