## Kerala PSC Previous Years Question Paper & Answer

Title : GERNERAL MANAGER DCB
Question Code : A

Page:7

Below are the scanned copy of Kerala Public Service Commission (KPSC) Question Paper with answer keys of Exam Name 'GERNERAL MANAGER DCB' And exam conducted in the year 2017. And Question paper code was '082/2017/OL'. 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.

page: 7 out of 11
Excerpt of Question Code: 082/2017/OL

Question55:-According to Walter Model, when the retum on investment is more than the cost of equity capital, in order to
maximize the value of firm
A:-100% dividend pay out
B:-50% dividend pay out
C:-Not to pay dividend
D:-Pay any dividend
Question56:-Unlevering ग beta means
A:-Calculation of equity beta
B:-Calculation of debt beta
C:-Calculation of modified beta
D:-Calculation of firms beta
Question57:-Trading on equity is a situation where
A:-ROl is more than cost of debt
B:-ROl is less than cost of debt
C:-ROl is equal to cost of debt
D:-ROI is not related to cost of debt
Question58:-In Certainty Equivalents approach in order to incorporate the risk, adjustment made on
A:-Profit
B:-Discount rate
C:-Cash flow
D:-Probability
Question59:-A company is expected to pay a dividend of Rs. 10 per share next year. The dividends are expected to grow
perpetually at a rate of 10%. What is the value of its share if the required rate of retum is 15% 7
2:-87
B:-150
C:-100
D:-200
Question60:-Deposit multiplier for a bank with™* 'p* as initial deposit and 'r* as the cash reserve ratio is
கற
B:-p/r
:-0/)1 +
0:-0/1 -ಗ)
Question61:-A banking company cannot hold any immovable property not acquired for its own use for a period exceeding
A:-12 years
B:-10 years
C:-7 years
0:-5 5
Question62:-Which of the following is a liability of a bank 7
A:-Money at call
B:-Treasury bills
C:-Commercial paper
D:-Certificate of deposit
Question63:-The rules framed in the Claytons case relates to Banker's
A:-Right of appropriation
B:-Right of general lien
C:-Right of set off
D:-Right to charge incidental charges