Explanation

• Public administration education and training in Pakistan have been primarily influenced by:
• the British colonial administrative framework
• the American public administration model
• Introduced during the 1950s and 1960s.

Explanation

Given:

• Dividend (D₀) = Rs. 4
• Market Price (P₀) = Rs. 100
• Growth rate (g) = 5%

Step 1: Calculate next year’s dividend

D₁ = D₀ × (1 + g)
= 4 × 1.05
= Rs. 4.20

Step 2: Use the Gordon Growth Model

Required Return:

Ke​=D1/P0​​​+g 

Ke​=4.20/100 ​+0.05

Ke​=0.042+0.05=0.092

Ke​=9.2%≈9%

Explanation

For an ordinary annuity:

PV=PMT×1−(1+r)−n/r​

PMT = Rs. 4,000

r = 8% = 0.08

n = 20 years

PV ≈ Rs. 39,727

Explanation

• When a bond sells for more than its par value, it is trading at a premium.
• This occurs because the bond's fixed interest payments (the coupon rate) are higher than the current market interest rate (the yield to maturity, or YTM).
• Investors are willing to pay extra upfront for those larger interest payouts.
• Consequently, the total expected return over the life of the bond (YTM) drops below the stated coupon rate.

Explanation

Standard Deviation measures spread.

If every observation is multiplied by 3, the spread also gets multiplied by 3.

Mean changes by 3x, and SD also changes by 3x.

Last verified on 21-08-2026