Underwriting of Shares and Debentures MCQ’s | Financial Accounting (Free Resource)
Underwriting of Shares and Debentures MCQ’s
1. The underwriting commission in case of debentures as per the Companies Act shall not exceed
(a) 5 percent of issue price
(b) 10 percent of the issue price
(c) 2.5 percent of the issue price
(d) 2 per cent of the issue price
2. As per SEBI guidelines, the underwriting commission on equity shares
(a) 10 per cent of the issue price
(b) 5 per cent of the issue price
(c) 2.5 per cent of the issue price
(d) 2 per cent of the issue price
3. The underwriting commission in case of Rs 4 lakh preference shares capital subscribed to by the public, under Ministry of Finance guidelines, should not exceed
(a) 2.5 per cent
(b) 1 per cent
(c) 2.0 per cent
(d) 1.5 per cent
4. According to the Companies Act the underwriting commission on shares should not exceed
(a) 5 per cent
(b) 2.5 per cent
(c) 10 per cent
(d) 1 per cent
5. The underwriting commission is calculated on
(a) net liability of the share value
(b) firm underwriting value of the shares
(c) marked application of the share value
(d) issue price of the shares underwritten
6. Unmarked applications refer to
(a) Firm underwriting
(b) Applications issued by the company
(c) Applications bearing the stamp of underwriter
(d) Applications from the public received directly by the company without bearing any stamp of underwriter
7. When all the shares are underwritten by the underwriters, it is called
(a) Firm underwriting
(b) Partial underwriting
(c) Complete underwriting
(d) None of the above
8. Marked applications refer to
(a) Applications bearing the seal of underwriting
(b) Applications bearing the signature of applicants
(c) Applications issued by company
(d) None of the above.
9. R Limited issued a debenture of Rs 100 each at Rs 90. The underwriting commission will be paid on
(a) Rs 100
(b) Rs 95
(c) Rs 105
(d) Rs 90
10. M Limited issued shares at a face Value of Rs 100 with a premium of Rs 20 per share. The underwriting commission will be calculated on
(a) Rs 100
(b) Rs 90
(c) Rs 80
(d) Rs 120
| Answers: 1)2.5 percent of the issue price 2)2.5 percent of the issue price 3)1.5 per cent 4)5 per cent 5)issue price of the shares underwritten 6)Applications from the public received directly by the company without bearing any stamp of underwriter 7)Complete underwriting 8)Applications bearing the seal of underwriting 9)Rs 90 10)Rs 120 |
