AAFM Chartered Wealth Manager (CWM) Certification Level II Examination - CWM_LEVEL_2 Exam Practice Test
Section B (2 Mark)
Calculate the value at which an office building can be priced from the following information:
A similar building has 8% capitalization rate.
Calculate the value at which an office building can be priced from the following information:
A similar building has 8% capitalization rate.
Correct Answer: A
Section A (1 Mark)
Which of the following income is not exempt under section 10-
Which of the following income is not exempt under section 10-
Correct Answer: B
Section B (2 Mark)
A Resident is defined as not Ordinarily Resident provided such individual has been: a non- resident in 9 out of
10 Financial Years preceding the current year or his stay in India totals to _________days or less in
___________financial years preceding the current year.
A Resident is defined as not Ordinarily Resident provided such individual has been: a non- resident in 9 out of
10 Financial Years preceding the current year or his stay in India totals to _________days or less in
___________financial years preceding the current year.
Correct Answer: B
Section B (2 Mark)
Which of the following statements with respect to DTAA is/are correct?
Which of the following statements with respect to DTAA is/are correct?
Correct Answer: B
Section A (1 Mark)
Every employer is obliged to ensure that his employees get a safe and secure workplace. In relation to the risks arising in the workplace which affects the employees, cover is provided through
Every employer is obliged to ensure that his employees get a safe and secure workplace. In relation to the risks arising in the workplace which affects the employees, cover is provided through
Correct Answer: C
Section A (1 Mark)
Credit reports provided by credit bureaus provide lenders:
Credit reports provided by credit bureaus provide lenders:
Correct Answer: C
Section A (1 Mark)
The effect on a bond portfolio's value of a decrease in yield would be most accurately estimated by using:
The effect on a bond portfolio's value of a decrease in yield would be most accurately estimated by using:
Correct Answer: B
Section A (1 Mark)
All of the following are assumptions made by technical analysts except:
All of the following are assumptions made by technical analysts except:
Correct Answer: D
Section B (2 Mark)
Jaipur Golden Railroad reported net income of Rs770 million in 1993, after interest expenses of Rs. 320 million. (The corporate tax rate was 36%.) It reported depreciation of Rs.960 million in that year, and capital spending was Rs1.2 billion. The firm also had Rs. 4 billion in debt outstanding on the books, rated AA (carrying a yield to maturity of 8%), trading at par (up from Rs3.8 billion at the end of 1992). The beta of the stock is 1.05, and there were 200 million shares outstanding (trading at Rs 60 per share), with a book value of Rs5 billion. Jaipur Golden paid 40% of its earnings as dividends and working capital requirements are negligible. (The treasury Bill rate is 7%.) Estimate the free cash flow to the firm in 1993.
Jaipur Golden Railroad reported net income of Rs770 million in 1993, after interest expenses of Rs. 320 million. (The corporate tax rate was 36%.) It reported depreciation of Rs.960 million in that year, and capital spending was Rs1.2 billion. The firm also had Rs. 4 billion in debt outstanding on the books, rated AA (carrying a yield to maturity of 8%), trading at par (up from Rs3.8 billion at the end of 1992). The beta of the stock is 1.05, and there were 200 million shares outstanding (trading at Rs 60 per share), with a book value of Rs5 billion. Jaipur Golden paid 40% of its earnings as dividends and working capital requirements are negligible. (The treasury Bill rate is 7%.) Estimate the free cash flow to the firm in 1993.
Correct Answer: D
Section B (2 Mark)
The current market price of a share of CAT stock is Rs76. If a call option on this stock has a strike price of Rs76, the call
The current market price of a share of CAT stock is Rs76. If a call option on this stock has a strike price of Rs76, the call
Correct Answer: C
Section B (2 Mark)
Ashish is bullish about HLL which trades in the spot market at Rs.210. He buys 10 three-month call option contracts on HLL with a strike of 230 at a premium of Rs.1.05 per call. Three months later, HLL closes at Rs.
250. Assuming 1 contract = 100 shares, his profit on the position is ___________.
Ashish is bullish about HLL which trades in the spot market at Rs.210. He buys 10 three-month call option contracts on HLL with a strike of 230 at a premium of Rs.1.05 per call. Three months later, HLL closes at Rs.
250. Assuming 1 contract = 100 shares, his profit on the position is ___________.
Correct Answer: A
Section A (1 Mark)
The borrower's attitude toward his or her credit obligations is called:
The borrower's attitude toward his or her credit obligations is called:
Correct Answer: C
Section A (1 Mark)
The legal heir of the deceased who receives family pension is allowed a standard deduction from such family pension received to the extent of:
The legal heir of the deceased who receives family pension is allowed a standard deduction from such family pension received to the extent of:
Correct Answer: B
Section C (4 Mark)
Read the senario and answer to the question.
Calculate income from House property for Mr. Keshav for assessment year 2010-11.
Read the senario and answer to the question.
Calculate income from House property for Mr. Keshav for assessment year 2010-11.
Correct Answer: C
Section C (4 Mark)
As a CWM you are required to calculate the tax liability of an individual whose Taxable income is:
* $ 1,22,300 in US dollars and he is a US citizen (Heads of the households)
* $ 310000 in SGD and he is a citizen of Singapore
As a CWM you are required to calculate the tax liability of an individual whose Taxable income is:
* $ 1,22,300 in US dollars and he is a US citizen (Heads of the households)
* $ 310000 in SGD and he is a citizen of Singapore
Correct Answer: C