B.B.A. LL.B. (Five Years) Sem 4 Financial Management 2011 Jun Question Paper - KSLU

Questions asked in this paper

UNIT - I

1. Q1 (a) The capital structure of Sun Ltd. is as follows :
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2. Q1 OR Following is the capital structure of Supermoon Ltd.
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3. Q1 (b) Explain how an empirical evaluation of a model is done.
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4. Q1 OR Explain the advantages and limitations of cost of capital.
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UNIT - II

1. Q2 (a) DMK Ltd. has 2,00,000 shares outstanding and is planning to declare a dividend to ₹ 5/- at the end of current financial year. The present market price is ₹ 100. The cost of equity capital Ke may be taken at 10%. Using MM model and assuming no taxes, ascertain the price of the company's share as it is likely to prevail at the end of the year.
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2. Q2 OR What are the factors that influence dividend policy ?
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3. Q2 (b) Explain traditional proposition V/s M Hypothesis in dividend policy.
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4. Q2 OR Forms of dividend policy.
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UNIT - III

1. Q3 (a) You are given below the estimates. As a finance manager, set up your calculations for the average amount of the working capital required for the year ending 30-09-2010 after making a provision of 20% for contingencies.
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2. Q3 OR What is working capital management ? Explain the factors responsible for working capital management.
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3. Q3 (b) What is the significance of working capital management ?
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4. Q3 OR What are the different techniques being adopted while managing inventories ? Explain them.
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UNIT - IV

1. Q4 (a) One of the 3 projects of a company is doing poorly and being considered for replacement. The projects A, B, C are expected to require ₹ 2,00,000, each having estimated life of 5, 4 and 3 years respectively. Anticipated cash flows of the projects are given below (after tax)
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2. Q4 OR Shiva Ltd. is planning to invest into a new equipment costing ₹ 80,00,000. The equipment has economic life of 5 years with nil salvage value. The tax rate is 40%, original cost method is used for depreciation.
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3. Q4 (b) Brief the financial management of multinational corporations.
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4. Q4 OR Explain factors determining capital structure of a multinational corporation.
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UNIT - V

1. Q5 (a) Rakesh Ltd. is absorbed by Nitin Ltd. given below are the balance sheets of two companies as on 31-12-2010.
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2. Q5 OR What is the difference between merger and amalgamation ? Kiran company wishes to take over Sharad company. The financial details of the two companies are as under :
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3. Q5 (b) Explain different methods of mergers along with examples.
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4. Q5 OR Explain different types of mergers along with examples.
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Typed from the KSLU paper above. The paper is the original. Long reading passages are shortened here to their first and last lines and a summary.