Debt Equity Composition in Industries Quiz
30 Questions
1 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What aspect of a project do technical factors relate to?

  • Labour and stakeholders
  • Market and cost
  • Level of pollution and environmental degradation
  • Project scope and change in technology (correct)
  • In project feasibility studies, what are considered economic benefits apart from financial gains?

  • Level of pollution and environmental degradation
  • Market and cost
  • Employment generation and economic development (correct)
  • Labour and stakeholders
  • Which dimension includes factors like change in policy, competitive environment, and exchange rate?

  • Economical (correct)
  • Environmental
  • Technical
  • Socio-political
  • What is essential to analyze during the formulation and appraisal phase of a programme?

    <p>Risk and uncertainties</p> Signup and view all the answers

    Which aspect is becoming increasingly important in project feasibility studies?

    <p>Management aspects</p> Signup and view all the answers

    Under which category does 'environmental degradation' fall in the factors affecting projects?

    <p>Environmental</p> Signup and view all the answers

    What factors are considered to identify the share of a proposed project in the market?

    <p>Competitive position, existing and potential competitors, capacity utilization</p> Signup and view all the answers

    What is included in the study of commercial feasibility of a project?

    <p>Arriving at physical requirements of production input and matching costs with revenues</p> Signup and view all the answers

    What does technical feasibility assessment involve?

    <p>Detailed assessment of production process requirements and necessary goods/services</p> Signup and view all the answers

    In terms of technology, what should a feasibility report describe?

    <p>Equipment requirements, labor needs, and project inputs</p> Signup and view all the answers

    Why is the location of the project given special attention in technical feasibility?

    <p>In relevance to technical requirements like equipment and inputs</p> Signup and view all the answers

    What is the main purpose of determining the break-even point in a project?

    <p>To evaluate the project's profitability threshold</p> Signup and view all the answers

    What is the promoters' contribution in a project?

    <p>The promoter's financial stake in the project</p> Signup and view all the answers

    How is the debt-service coverage calculated in a project?

    <p>By considering profit after tax but before depreciation and interest</p> Signup and view all the answers

    What indicates that a project is sound and viable in terms of cash flow?

    <p>Cash flow is 1.5 to 2 times the total amount due</p> Signup and view all the answers

    When does the repayment of a loan typically start after commercial production begins?

    <p>After 2 years of commercial production</p> Signup and view all the answers

    What is syndication in project financing?

    <p>Where multiple institutions participate in financing the project</p> Signup and view all the answers

    What does a moratorium period in loan repayment refer to?

    <p>A period before loan repayment starts after commercial production begins</p> Signup and view all the answers

    What is a de facto requirement for achieving attractive economics for large infrastructure financings?

    <p>High leverage and long-tenor financing</p> Signup and view all the answers

    How can the efficacy of the remedy to Lenders/investors be negated in the event of a strategic sovereign default?

    <p>By expropriation/nationalisation of assets</p> Signup and view all the answers

    What type of financing generally necessitates higher upfront transactional costs than traditional corporate lending?

    <p>Limited Recourse financing</p> Signup and view all the answers

    How are additional transactional costs handled in the overall project budget for a large infrastructure endeavor?

    <p>Capitalised into the overall project budget</p> Signup and view all the answers

    What type of risk can be mitigated through the use of financing products from multilateral and export credit agencies?

    <p>Political risk</p> Signup and view all the answers

    What can increase the execution timetable for a Limited Recourse financing structure compared to traditional corporate lending?

    <p>Complex legal, technical, and financial structures</p> Signup and view all the answers

    What is the formula to calculate the provision for escalation?

    <p>(latest rate of annual inflation) × (length of the delivery period)</p> Signup and view all the answers

    What is considered an operating expense in terms of technical know-how and engineering services?

    <p>Royalty payable annually</p> Signup and view all the answers

    What types of expenses should be included in the category 'Expenses on Foreign Technicians and Training of Indian Technicians Abroad'?

    <p>Travel, boarding, lodging, salaries, and training expenses</p> Signup and view all the answers

    How are miscellaneous fixed assets defined in the context provided?

    <p>Assets not related to the manufacturing process</p> Signup and view all the answers

    For what purpose might technical consultants or collaborators be engaged from India and/or abroad?

    <p>Choice of technology selection</p> Signup and view all the answers

    What is included in the project cost related to technical know-how and engineering services?

    <p>Salaries and allowances of consultants</p> Signup and view all the answers

    More Like This

    Estructura Financiera y Deuda-Capital
    16 questions
    Business Financing Basics
    10 questions

    Business Financing Basics

    RewardingConstructivism1703 avatar
    RewardingConstructivism1703
    Finance: Direct vs Indirect Concepts
    40 questions
    Debt & Equity Considerations in Finance
    64 questions
    Use Quizgecko on...
    Browser
    Browser