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Model Question for Management Trainee (MT)

Model Question for Management Trainee (MT)

27 Feb 2021 20:18
  1. The three forms of organizations are:
  1. Corporation, Partnership, and Public Limited Company                                                  ____
  2. Proprietorship, Partnership, and Corporation                                                                  ____
  3. Partnership, Entrepreneurship, and Corporation                                                              ____
  4. Corporation, Entrepreneurship, and Public Limited Company                                         ____

 

  1. The two types of Financial Markets are
  1. Primary Markers and Secondary Markets                                                                       ____
  2. Dealer Markets and Auction Markets                                                                             ____
  3. Shares’ Markets and Bonds’ Markets                                                                             ____
  4. Equity Markets and Debt Markets                                                                                 ____

 

  1. The two types of Secondary Markets are
  1. Shares’ Markets and Bonds’ Markets                                                                             ____
  2. Financial Markets and Capital Markets                                                                          ____
  3. Dealer Markets and Auction Markets                                                                             ____
  4. Primary Markets and Premier Markets                                                                           ____

 

  1. The more debt a firm has (as a percentage of assets), the greater is its degree
  1. liquidity                                                                                                                       ____
  2. financial leverage                                                                                                         ____
  3. operating leverage                                                                                                        ____
  4. none of the above                                                                                                         ____

 

  1. Asset accounts normally have debit balances, to increase an asset account, we need to
    1. debit  the account                                                                                                         ____
    2. credit the account                                                                                                         ____
    3. both debit and credit the account                                                                                    ____
    4. none of the above                                                                                                         ____

 

  1. To decrease an asset account, we need to
    1. debit the account                                                                                                          ____
    2. both debit and credit the account                                                                                    ____
    3. credit  the account                                                                                                        ____
    4. none of the above                                                                                                         ____

 

  1. Liability accounts normally have credit balances, to increase a liability account, we need to
    1. both debit and credit the account                                                                                    ____
    2. credit  the account                                                                                                        ____
    3. debit the account                                                                                                          ____
    4. none of the above                                                                                                         ____

 

  1. To decrease a liability account, we need to
    1. debit  the account                                                                                                         ____
    2. credit the account                                                                                                         ____
    3. both debit and credit the account                                                                                    ____
    4. none of the above                                                                                                         ____

 

 

 

 

  1. The interest rate required in the market on a bond is referred to as the bond’s
    1. discount rate                                                                                                                 ____
    2. maturity return rate                                                                                                       ____
    3. yield to maturity                                                                                                           ____
    4. all of the above                                                                                                             ____

 

  1. When a bond sells for less than its face value, it is referred to as a
    1. premium bond                                                                                                              ____
    2. discount bond                                                                                                               ____
    3. treasury bill                                                                                                                  ____
    4. debenture                                                                                                                     ____

 

  1. When a bond sells for more than its face value, it is referred to as a
    1. high risk bond                                                                                                              ____
    2. low risk bond                                                                                                               ____
    3. premium bond                                                                                                              ____
    4. discount bond                                                                                                               ____

 

  1. The two factors that will have an impact on the bond’s sensitivity are:
    1. maturity and coupon rate                                                                                               ____
    2. yield to maturity and coupon rate                                                                                   ____
    3. maturity and yield to maturity                                                                                       ____
    4. coupon rate and face value                                                                                            ____

 

  1. Corporate Bonds are normally classified under two distinctive forms. These are:
    1. treasury bills and security bonds                                                                                    ____
    2. positive covenant and negative covenant                                                                        ____
    3. high risk form and low risk form                                                                                   ____
    4. registered form and bearer form                                                                                     ____

 

14. Created by Merrill Lynch, this type of bond which is very popular having features like callable, puttable, convertible, zero coupon and subordinated note, is referred to

a.   Original Issue Discount Bond                                                                                        ____

b.   Liquid Yield Option Note                                                                                             ____   

c.   Convertible Bond                                                                                                         ____

d.   Floating Rate Bond                                                                                                       ____

 

 

Consider the following statement and choose the correct answers: A Governmental bond with a twenty year maturity period and a face value of $1000, with a coupon rate of 10% pays semi-annual interest, but investors expect 12% return.

 

  1. Based on the above information, the Value of the Bond can be determined to be:
  1. $849.54                                                                                                                        ____
  2. $862.76                                                                                                                        ____
  3. $826.52                                                                                                                        ____
  4. $832.12                                                                                                                        ____

 

 

 

 

  1. As per the given information, the effective annual yield on the bond can be calculated to be
  1. 12.12%                                                                                                                        ____
  2. 12.24%                                                                                                                        ____
  3. 12.36%                                                                                                                        ____
  4. 12.48%                                                                                                                        ____

 

Consider the following information, and choose the correct answers to the statements given below:

Global Inc., has recently paid a cash dividend of  $2 per share. Investors require 16% return on such investments. The dividend is expected to grow at a steady 8% per annum.

 

 

  1. Based on the above information and Dividend Growth Model, the current value of the stock  is
  1. $24                                                                                                                              ____
  2. $27                                                                                                                              ____
  3. $32                                                                                                                              ____   
  4. $18                                                                                                                              ____

 

  1. Based on the Dividend Growth Model, the dividend in five years will be equal to
  1. $2.16                                                                                                                           ____
  2. $3.12                                                                                                                           ____
  3. $3.45                                                                                                                           ____
  4. $2.94                                                                                                                           ____

 

  1. Using the Dividend Growth Model, the price of the stock in five years can be calculated to be
  1. $36.50                                                                                                                         ____
  2. $39.67                                                                                                                         ____
  3. $32.45                                                                                                                         ____
  4. $41.14                                                                                                                         ____

 

  1. NYSE Members who execute customer orders to buy and sell stock transmitted to the exchange floor are referred to as
  1. stock specialists                                                                                                            ____
  2. floor brokers                                                                                                                ____
  3. commission brokers                                                                                                      ____
  4. floor traders                                                                                                                 ____

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Walter E. Heller Corporation has provided as follows, the Income Statement and the Balance Sheet for the year 2016. Based on the given information, choose the correct answers:

 

INCOME

 

BALANCE SHEET (Assets)

Sales

 

 $2,590,614.00

 

Assets

 

 

Cost of Goods sold

 

 $1,617,253.00

 

Cash

 

 $    183,415.00

Gross Profit

 

 $    973,361.00

 

Accounts Receivables

 

 $    542,659.00

Selling, general, and administrative expenses

 

 $    410,060.00

 

Inventories

 

 $    168,616.00

Depreciation & Amortization

 

 $    113,822.00

 

Other Current Assets

 

 $      54,304.00

Operating Profit

 

 $    449,479.00

Total Current Assets

 

 $    948,994.00

Interest Expense

 

 $      28,686.00

Gross Plant, property, and equipment

 

 $ 1,244,185.00

Income before Taxes

 

 $    420,793.00

Accumulated Depreciation

 

 $ (562,444.00)

Income Taxes

 

 $    153,592.00

Net Plant, property, and equipment

 

 $    681,741.00

Net Income

 

 $    267,201.00

Other Assets

 

 $    481,342.00

 

   

Total Assets

 

 $ 2,112,077.00

 

 

   

 

 

BALANCE SHEET  (Liabilities and Equity)

Liabilities

 

Equity

Accounts Payable and accruals

 $    256,086.00

Common Stock

 

 

Short Term Debt

 

 $    262,068.00

Par Value and Paid in Capital

 $      49,771.00

Total Current Liabilities