Chapter 14- VALUATION

JavaScript isn't enabled in your browser, so this file can't be opened. Enable and reload.

Email *

Record my email address with my response

How does the Black-Scholes Model impact the pricing of options contracts in a Category III AIF? *

1 point

Considers various factors affecting option prices

Utilizes historical data

Ignores market volatility

Simplifies pricing calculations

How is total exposure calculated concerning leverage in a Category III AIF? *

1 point

Sum of long and short positions divided by NAV

Product of long and short positions

Difference between long and short positions

Multiplication of long positions

What tenor defines the transactions in the overnight money market? *

1 point

One working day

Two days to 14 days

15 days to one year

Less than one year

What defines the transactions in the term money market? *

1 point

15 days to one year

One working day

Less than one year

More than one year

How does the allocation of Series Expenses differ from Fund Expenses in a Category III AIF? *

1 point

Series Expenses are specific to a series, while Fund Expenses are for the entire fund

Fund Expenses are charged per unit, while Series Expenses are a fixed amount

Series Expenses are regulated by SEBI, while Fund Expenses are determined by AMFI

Fund Expenses are borne by investors, while Series Expenses are covered by management

What is the role of third-party registered valuers in AIFs? *

1 point

To ensure independent and fair valuation of investments

To assist in fund management decisions

To conduct audits of the fund's financials

To provide investment advice

How does an AIF use debt structures in financing investee companies? *

1 point

By issuing shares

By providing grants

By offering loans

By purchasing fixed income securities

Which approach to valuation uses option pricing models in cash flow-based valuation to factor in embedded real options? *

1 point

Asset based Valuation

Relative Valuation

Contingent Claim Valuation

Economic Profit approach

How is the Book Value per Share calculated under the Book Value or Net Asset Value (NAV) approach? *

1 point

Total market value of assets/Total liabilities

Total shareholders' funds/Number of shares issued

Liquidation value of assets/Total liabilities

Total assets/Total equity

What is the typical forecasting period for computing the free cash flow in DCF valuation methodology? *

1 point

1 year

3 years

5 years

10 years

What is the primary basis for valuation in relative valuation methodology? *

1 point

Book value

Market price

Replacement cost

Net asset value

What determines the value without reference to the market price in relative valuation? *

1 point

Market-based multiples

Earnings-based multiples

Deal comps

Firm value multiples

What does the EV/EBITDA multiple measure in relative valuation? *

1 point

Profitability

Operational efficiency

Liquidity

Market capitalization

What is the metric that measures the rate at which a start-up spends its cash flows? *

1 point

Burn Rate

Customer Conversion Rate

Contribution Margin After Marketing

Net Promoter Score (NPS)

What metric indicates the profitability of an investment relative to its cost? *

1 point

Return on Investment (ROI)

Monthly Recurring Revenue (MRR)

Customer Acquisition Cost (CAC)

Daily Active Users (DAU) / Monthly Active Users (MAU)

What metric measures the percentage of customers who discontinue using a product or service over a given period and is crucial for maintaining a loyal customer base? *

1 point

Churn Rate

Customer Conversion Rate

Annual Recurring Revenue (ARR)

Operating Cash Flow (OCF)

Which option allows the price of equity shares to be taken as the fair market value (FMV) to the extent it does not exceed the aggregate consideration received from the buyer(s)? *

1 point

Option 3: With respect to consideration received by a Venture Capital Undertaking for issue of unquoted equity shares

Option 1: With respect to consideration received by Resident Investors for issue of unquoted equity shares

Option 2: With respect to consideration received by a Company for issue of unquoted equity shares

Option 4: With respect to consideration received by a Private Equity Fund for issue of unquoted equity shares

What is the timeframe within which the valuation report by a Merchant Banker for determining the FMV of unquoted equity shares should be acceptable according to Rule 11UA(3) of the Income Tax Act? *

1 point

Within 90 days before the date of issue of unquoted equity shares

Within 30 days before the date of issue of unquoted equity shares

Within 180 days before the date of issue of unquoted equity shares

Within 90 days after the date of issue of unquoted equity shares

What is the primary purpose of the Angel Tax provision under Section 56(2)(viib) of the Income Tax Act, 1961? *

1 point

To prevent tax evasion on excess consideration received for unquoted equity shares

To encourage foreign investment in start-ups

To provide tax deductions for early-stage investors

To incentivize start-ups to go public

What is the primary purpose of Section 56(2)(viib) of the Income Tax Act, 1961? *

1 point

To determine the tax rate for investments in start-ups

To regulate the issuance of unquoted equity shares

To tax funds received in excess of the Fair Market Value (FMV)

To provide tax deductions for early-stage investors

Send me a copy of my responses.

Submit

Clear form

This form was created inside of N/A.

Does this form look suspicious? Report

Forms