Q1 ABC locket issued Rs.1000 par valued perpetual bonds with a contractual
coupon rate of 5% six years ago. What is the intrinsic value of Lockets today if
similar risk securities carry a 4% rate?
Marks 4
Q2 What are the two Major Criteria of Capital Budgeting? Give a brief description
of how these criteria help to decide for a project to be acceptable for investment.
Marks 4
Q3 What will be the effect when company raises money through BOND and
Marks 2