B.Com (Professional), 6th Semester
Paper: BCOP 603 FINANCIAL MANAGEMENT
(SET II)
Paper: BCOP 603 FINANCIAL MANAGEMENT
(SET II)
Time
Allowed — 3Hours Max Marks - 60
Note: Section A is compulsory; each question is of 2 marks.
Attempt any four questions out of six questions under Section B, each question
is of 10 marks.
SECTION — A
Q 1. Define financial management.
Q2. Low. is Financial Planning concerned with
future?
Q3 What is
financial leverage?
Q4 What is scrip
dividend?
Q5 Compare
capital and capitalization.
Q6 What is
factoring?
Q7 What is
inventory turnover ratio?
Q8 Define
capital budgeting.
Q9
What
is EOQ?
Q10 What is Return on Investment?
SECTION — B
Q11 Define dividend policy. Why do investors want
dividends? Explain the different types of dividends.
Q12 Explain
financial plan. What are its main ingredients? Explain the characteristics of
sound financial
plan.
Q13 Explain the
EMT- EPS analysis and various factors affecting the capital structure decision of the
organization.
Q14 Describe the need and determinants of working
capital in business.
Q15 A proforma cost sheet of company provides the
following particulars:
Elements of
cost Material
40%, Direct labour 20%, Overheads 20%
It is proposed
to maintain a level of activity of 2,00,000 units.
Selling price
is Rs. 12 per unit.
Raw materials are expected to
remain in stores for an average period of one month. Materials will be in process, on averages half a month.
Finished
goods are required to be in stock for an average period of one month.
Credit allowed
to debtors is 2months.
Credit
allowed by suppliers is one month.
You are required to prepare a statement of
working capital requirements.
Q15. A company is considering an investment
proposal to purchase a machine costing Rs. 5.00.000. The machine has a life expectancy
of 5 years and no salvage value. Company's tax rate
is 40%. It uses straight line method for providing
depreciation. The estimated cash flows before tax after depreciation from the machine are as follows:
Year
|
CFBT
|
PV@10%
|
1
|
1.20,000
|
0.909
|
2
|
1,40,000
|
0.826
|
3
|
1,80,000
|
0.751
|
4
|
2,00,000
|
0.683
|
5
|
3,00,000
|
0.621
|
Calculate :
(a) Pay Back Period (b) Average Rate of Return (c) Present Value and
Profitability Index @ 10%
discount rate.
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North India Campus