Roll No.
B. COM. (Sem.-4th)
BUSINESS FINANCE
Subject Code:
BCOP-404
Time: 3 Hrs.
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
1.
what is business finance ?
2.
give various forms of dividends.
3.
Define receivables management.
4.
What is cost of equity?
5.
What is financial leverage?
6.
What is EOQ?
7.
Define Capital Budgeting.
8.
What is venture capital financing?
9.
Rs. 1,000 were deposited into a savings account
paying interest at an annual rate of 10% compounded semi-annually, what is its
future value after five year?
10.
What is ploughing back of profits?
Section-B
11.
Explain the theories of capital structure to
evaluate impact on value of firm.
12.
Discuss the scope and objectives of finance
function in business and role of Chief Financial Officer.
13.
Examine critically the different approaches for
computing cost of equity. Discuss the merits and demerits of each.
14.
What is working capital? Discuss the factors
determining working capital requirements in an organization.
15.
A
company is considering an investment proposal to purchase a machine costing Rs.
2,50,000. The machine has a life expectancy of 5 years and no salvage value.
Company’s tac rate is 40 5. 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
|
60,000
|
0.909
|
2
|
70,000
|
0.826
|
3
|
90,000
|
0.751
|
4
|
1,00,000
|
0.683
|
5
|
1,50,000
|
0.621
|
Calculate : (a) Pay back period (b) average rate of return (c) present value
and profitability Index @ discount rate
16.
The following information pertains to XY ltd.
Earnings of the Company
|
Rs. 5,00,000
|
Dividend Pay out ratio
|
60%
|
No. of shares outstanding
|
1,00,00
|
Equity Capitalization Rate
|
12%
|
Rate of return on investment
|
15%
|
a.
What is market value per share as per Water’s
model?
b.
What is optimum payout ratio and calculate
market value at that level ?
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