Kerala PSC Previous Years Question Paper & Answer
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Below are the scanned copy of Kerala Public Service Commission (KPSC) Question Paper with answer keys of Exam Name 'State Tax Officer' And exam conducted in the year 2023. And Question paper code was '025/2023'. Medium of question paper was in Malayalam or English . Booklet Alphacode was 'A'. Answer keys are given at the bottom, but we suggest you to try answering the questions yourself and compare the key along wih to check your performance. Because we would like you to do and practice by yourself.
35. Which of the following options is false?
(A) The cost of equity capital is lower than the cost of debt
(B) The equity shares of a company must give a higher return than debt because
equity shares involve more systematic risk
(C) Cost of capital is the minimum rate of return that a firm requires to increase the
value of firm in the market place
0) The cost of equity capital is very difficult to estimate
36. According to Net Operating Income (NOI) approach :
1. Cost of debt remains constant at all level of debt
2. Overall cost of capital remains constant
3. Cost of debt is less than cost of equity
4. Value of equity is residual
(A) 1, 2, 3 are correct ൯) 1, 2, 4 are correct
(0) 1,3, 4 are correct (90) Allare correct
37. Which one of the following statement is correct about the weighted average cost of Capital
(WACC)?
(A) When computing the WACC, each category of capital is proportionately weighted
(B) WACC is also used as the discount rate for future cash flows in discounted cash
flow analysis
(C) Both (A) and (B)
(D) The WACC will remain constant unless a firm retires some of its debt
38. Negative working capital arises because of :
(A) Short term funds are invested in fixed assets
(B) Abnormal loss in inventory
(C) Both (A) and (B)
(D) Long term funds are invested in current asset
A 11 025/2023
[7.7.0.]