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Xavier Institute of Management, Bhubaneswar in association with

presents


HOLOCAUST

GLADIATOR 2010


INSTRUCTIONS 1. The participants are to submit their answers through the answer sheet link only. The link has been provided at the same location where you downloaded this file from. Any other form of submission will not be accepted. 2. Please ensure that the “participant’s details” section of the answer sheet is filled properly before submitting the answers. 3. There are a total of 36 questions. All questions carry equal marks. There is no negative marking. 4. The duration of this round is 90 minutes. Entries received after 23.30 hrs (October 24, 2010) will not be evaluated. 5. In case of a tie, the participants sending the answers earlier will qualify. 6. The top 60 participants from this round will qualify for the next round of GLADIATOR. 7. The results of this round will be announced within 48 hours after the completion of the quiz. 8. In case of any queries, please feel free to contact: o

Debojyoti Srimani: +91-9776295420 (u109178@stu.ximb.ac.in)

o Suvendu Panda: +91- 9439177529 (u109048@stu.ximb.ac.in)

BEST OF LUCK!!

GLADIATOR 2010


1. It couldn’t get easier than this to start with. Connect the following to “the ultimate battle for supremacy”

2. A survey of college professors found that over 90% of them rated their work as above average in comparison to their peers. This cognitive bias is known as the ________ Effect.

GLADIATOR 2010


3. It came during dire straits and the intelligentsia went gung-ho about it. What am I talking about? (Connect the following to get the answer)

4. You tend to use a particular vendor for your technology needs. However, recently, you’ve found that due to the extent of proprietary technology employed by the vendor, you’ve become stuck with them and increasingly dependent on them and switching would involve high costs. What’s the term for the sticky situation that you’re in? GLADIATOR 2010


5. I hail from the field of operations. Quality was my perennial war-cry. Who am I?

6. What is the electronic counterpart of the Bill of Lading, sent as an EDI Document? Hint: It’s usually sent before the BOL (which usually accompanies the goods)

GLADIATOR 2010


7. Identify the advertiser from the picture below, known for its iconic ads.

8. Apil Jain has forecasted that AAA Services Ltd will pay its first dividend two years from now amounting to Rs 12.50 per share. For the following year he forecasts a dividend of Rs 20 per share and expects dividends to increase at an average rate of 7% for the foreseeable future after that. If the risk-free rate is 4.5%, the market premium is 7.5% and AAA Services’ beta is 0.9, what would Mr. Jain’s estimate of the current value of AAA Services shares be closest to? a) Rs 370 b) Rs 390 c) Rs 470 GLADIATOR 2010


d) Rs 380

9. What term/concept, usually applicable to marketing, was spawned in this book?

10. Amit Sinha purchased shares of ABC Industries ltd. for Rs 380 and sold call options at Rs 400 covering all his shares for Rs 20 each. The sum of the maximum per-share gain and maximum per-share loss (as an absolute value) on the covered call position is: a) Rs 360 b) Rs 400

GLADIATOR 2010


c) Rs 420 d) Unlimited

11.

One of the most pioneering works in the field of Finance; I was

conceptualized by the gentlemen below. Identify me.

12. In this Brazilian company, every employee can come and go as they please, work at home if they want, choose who they want as their boss, set their own

GLADIATOR 2010


salaries which are published; bosses are evaluated by their subordinates publicly. Which is this company?

13. Often ignored by the multitude, I gave the following to the world of marketing. Who am I?

GLADIATOR 2010


14. You are in charge of development of a Touch-Screen phone, and you wish to customize an open source mobile OS, but lock down your hardware to ensure that only your version of the OS is used. What is this known as? Hint: This term was coined by the FSF.

15. Some say I revolutionized the field of operations, I believe I arrived just in time at it. Identify me.

16.

Over the last year, Interra Designs saw its accumulated depreciation

increase from Rs 340,000 to Rs 370,000. It purchased no capital assets during the period but had plant, property, equipment with a book value of Rs 400,000 at the GLADIATOR 2010


end of the year. The average useful life of the firm’s depreciable assets as of yearend is closest to: a) 13.33 years b) 24.67 years c) 26 years d) 14 years

17. I gave something iconic to the world of Indian Finance. Identify me.

GLADIATOR 2010


18. Firefox’s ‘Army of Awesome’ is a support mechanism whereby Twitter is used to connect Firefox supporters and fans to users having issues, and thereby provide support. Employees or contractors are not needed for this support function. What is this mode of outsourcing?

19. Why were we in news recently?

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20. An investor paid Rs 50 for an option that is currently in-the-money Rs 25. If the underlying is priced at Rs 250, then which of the following best describes that option? a) Put option with an exercise price of Rs 200 b) Call option with an exercise price of Rs 200 c) Put option with an exercise price of Rs 275 d) Call option with an exercise price of Rs 275

21. Different approaches but similar fate. How can we be connected together?

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22. Ram Bhagat is the portfolio manager of an aggressive growth fund. Ram is worried about the performance of his high beta portfolio in light of his belief that the stock market is currently overvalued. His firm requires him to maintain at least 80 % of the portfolio’s value in equities at all times. Ram decides to buy put options to protect the portfolio from the potential loss in case of a market decline. The profits and losses from resultant portfolio would have risk characteristics similar to a ______________ a) Short put and Long call position b) Covered call position c) Long call option d) Short call option

23. Together, we did something that revolutionized the world of corporate accounting. Identify us.

GLADIATOR 2010


24. These two gentlemen differ in a matter of ‘Principle’ regarding promotions in an organization. Who are they?

25. I am no longer “just a jargon”. I have become a conscious strategy adopted by companies to attain competitive advantage. What am I? (Connect the picture below to arrive at the answer)

GLADIATOR 2010


26. The probabilities that a venture capital investment will fail, given that it has survived all prior periods are: 1st year = 17%, 2nd year = 22%, 3rd year = 11% An investment of Rs 1.5 crore is expected to return Rs 7 crore if the venture survives till the end of the third year. The expected annual compound rate of return on this investment is closest to: a) 36% b) 37% c) 38% d) 39%

27.

I am a contemporary marketing practice. Identify me. (Connect the

following to get the answer)

GLADIATOR 2010


28. Rohit Kumar purchases a put contract on xyz stock of strike price Rs 320 for a premium of Rs 20. He holds the option until the expiration date when the stock sells for Rs 312 per share. What is the loss on the contract? a) –Rs 8 b) -Rs 20 c) -Rs 12 d) –Rs 16

GLADIATOR 2010


29.

I am a phenomenon primarily used by marketers but I believe I am

universally applicable. Identify me.

30.

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You’re on a tour of a Japanese factory and notice that there is a board with a switch at every workstation. Apparently, every worker is empowered to raise an alert through this switch, and cause production to stop immediately if an issue is found. What is this system called?

31. The table below lists information on price per share and shares outstanding for three stocks: Pilkington, Pinecask and Peerless January 1, 2009 Price per Outstanding Stock share Shares Pilkington Rs 100 10,000 Pinecask Rs 500 5,000 Peerless Rs 1000 500

December 31, 2010 Price per Outstanding share Shares Rs 100 10,000 Rs 500 5,000 Rs 900 500

Which of the following statements is least accurate? a) An investor portfolio with 1000 shares of each stock would track an unweighted index. b) An un-weighted index computed as an arithmetic mean would show higher returns than if it was calculated as a geometric mean. c) Returns on Pinecask would have the largest influence of the three on a market value-weighted index. d) A price-weighted index would be tracked by a portfolio with an equal number of stocks of all the three stocks.

GLADIATOR 2010


32.

How did the remnants of a dead fish found in Kanazawa help in the design of this car?

33. Jack D. has collected the following information about a company he is researching for equity investment: Revenue for prior years2008–2009= Rs 200 mil 2009–2010= Rs 240 mil EBITDA margins = 20% Interest cost =10% of EBITDA GLADIATOR 2010


Effective Tax Outflow = 10% of EBTDA CAPEX – 3% of revenues Change in work cap requirements – Rs 10 mil The company is growing at a constant rate in terms of Revenue, and operating cost growth rate to be maintained. Interest cost as a percentage remains the same, as well as effective tax rate. Calculate the FCFE for the year 2010-2011. a) Rs 26.854 mil b) Rs 25.404 mil c) Rs 26.016 mil d) Rs 25.732 mil

34.

GLADIATOR 2010


Identify what the ‘Model’ Shown in the picture has in common with the software development process.

35.

These prevent you from appreciating Rainbows, Kittens and butterflies. What are they?

36. Mr. Prembhai Modi is analyzing the fundamentals of XYZ Industries limited, in order to make a recommendation to his investors. Help him out in his analysis by picking the most suitable option:

a) Higher the DER, Higher will be the EPS, if the return on capital employed is less than rate of interest for debt. b) Higher the DER, Higher will be the EPS, if the return on capital employed is more than rate of interest for debt. GLADIATOR 2010


c) Higher the DER, Higher will be the ICR, irrespective of the return on capital employed. d) Higher the DER, lower will be the EPS, if the return on capital employed is more than rate of interest for debt.

GLADIATOR 2010

Holocaust  

holocaust prelims

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