Free AAFM CWM_LEVEL_2 Exam Actual Questions

The questions for CWM_LEVEL_2 were last updated On Mar 27, 2025

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Question No. 1

Section B (2 Mark)

Mr. Subhash Bansal, a marketing manager is employed with IMFB limited. He took an advance of Rs. 1,20,000 against the salary of Rs. 30,000 per month in the month of March 2007. The gross salary of Mr Bansal for the assessment year 2007-08 shall be:

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Correct Answer: A

Question No. 2

Section A (1 Mark)

Conventional theories presume that investors ____________ and behavioral finance presumes that they ____________.

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Correct Answer: B

Question No. 3

Section C (4 Mark)

KB, a household product manufacturer, reported earnings per share of Rs3.20 in 1993, and paid dividends per share of Rs1.70 in that year. The firm reported depreciation of Rs315 million in 1993, and capital expenditures of Rs475 million. (There were 160 million shares outstanding, trading at Rs51 per share.) This ratio of capital expenditures to depreciation is expected to be maintained in the long term. The working capital needs are negligible. KB had debt outstanding of Rs1.6 billion, and intends to maintain its current financing mix (of debt and equity) to finance future investment needs. The firm is in steady state and earnings are expected to grow 7% a year. The stock had a beta of 1.05. (The Risk Free Rate is 6.25%.)

Estimate the value per share, using the FCFE Model.

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Correct Answer: C

Question No. 4

Section A (1 Mark)

Financial Gerontology tries to assess client needs based on __________

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Correct Answer: D

Question No. 5

Section A (1 Mark)

To take care of the risks during the foreign travel, Overseas Travel Insurance policy cover provides various other covers, in addition to __________ insurance, such as baggage cover, loss of transport cover, personal accident cover, personal legal liability cover etc.

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Correct Answer: A