Basics – 1. What do you mean by junk bonds ? 2. What do you mean by callable bonds ? 3. What is market capitalization ? How to calculate it. 4. Difference between paid up, subscribed and authorized share capital ? 5. What do you mean by share outstanding and share issued. 6. What do mean by Mark to margin term ? How it is settled . 7. What is interest coverage ratio and formula and solvency ratio ? 8. Why equity valuation is important ? 9. Assumption of constant growth model ? 10. How growth is calculated ? 11. What is CAPM model and why it is know as capital assets model ? Assumption of capm model. 12. Why option strategies are made 13. Meaning of bear put spread and bull call spread and the difference between them. 14. What do you mean by time value of money and discounting rate. How it is calculated and why it is know as discounting rate ? 15. What do you mean by market premium and how it is calculated. 16. Meaning of beta alpha and Gama. And how to calculate that ? 17. Meaning of stock split and the procedure related to stock split and the real example of company 18. What is credit default swaps and plain vanilla swaps. 19. If the company have two alternative for one capital project & they need to opt for one from – A. Project A have more IRR than Project B B. Project B have more NAV than Project A C. Project A have much PI index than Project B You need to choose one best alternative. Explain the reason of choosing. 20. What is Depreciation & its types. 21. Diiference between Depreciation & Amortisation. 22. What is Accrual Accounting. 23. Difference between Cash Accounting & Accrual Accounting. 24. What is Clean Price of Bond & Dirty Price of Bond. 25. What is SML ( Security Market Line ) and what it represents. 26. What is Sharpe Ratio. 27. What does beta represent in SML. 28. What is Alpha. 29. Golden Rules of Accounting. 30. Option Strategies – Bear Put Spread, Straddle and Strangle and in which situation it can be used. 31. Call Option & Put Option & their Difference. 32. Difference between Options & Futures. 33. What can be used Future or Option if other factors remain constant like margin why you choose future else Option and viceversa. 34. What is Repo Rate & Reverse Repo Rate. 35. What is Stock Split & Bonus their entries and their effects on Share capital of the company. 36. Journal entries of – Dividend. 37. What is Swaps and in which situation it can be used. Different types of Swaps Interest rate swaps & Credit Default Swaps. 38. What is Gordon’s Growth Model & their assumptions. 39. Different types of Bonds – Callable & Putable Bonds. Situational Analysis and Technical questions – 1. Company is raising capital through three sources – 30% by preferred stock , 30% by common stock and 40% by debt. The Cost of debt is 8%, cost of preferred stock is 10% and cost of equity is 6%. What is the Cost of capital of the company and also describe all the journal entries possible in this case. Even if the Cost of equity is less than the Cost of debt, even than why companies prefer to take debt in sources ? 2. If A has purchased 100 shares of ABC ltd, and also purchased call option of ABC ltd to reduce his risk, to reduce more of his risk , A has hedged this risk of both the purchases. What could be the journal entries recorded in profit / loss cases. 3. A is a seller of call option. Strike price of the option is Rs.45 and market value of option is Rs.50. The option premium in this case is Rs.5. What would be the pay off of A. (Same question in case of put seller) 4. If the expected market return is 8% and market premium is 5% and the beta is given as 1.2. What would be the risk free rate of return. If the company is having beta more the particular industry what it indicates ? 5. If the mid cap company is taking license of software for Rs. 1200,000 which will expire in 1 year. What would be treatment in books of account and what will be the journal entries ? 6. Company is distributing dividend of this year and also the dividend of previous year ,what will the journal entries recorded and highlight the laws regarding dividend in companies act, 2016. 7. What is the difference between basic EPS and diluted EPS. After the maturity of convertible security , what are the effects highlighted in balance sheet of the company. 8. Difference between FCFF and FCFE cash flow based security Valuation. 9. What is immunization and convexity of bonds and describe the relationship between YTM and interest rates. 10. Describe the correlation and coefficient graph of two stock A and B with all the possible relationships. 11. Explain the systematic and unsystematic risk with real example. 12. What are the effects company have after the stock split. Explain with company example who have done the stock split. 13. How to calculate portfolio risk and what could be the best strategies one can opt to make their portfolio efficient. 14. What are the alternative investment option available. What do you mean by