B.B.A. LL.B. (Five Years) Sem 4 Financial Management 2012 Dec (70 marks) Question Paper - KSLU

Questions asked in this paper

UNIT - I

1. Q1 (a) What is Cost of Capital ? Explain the following terms : 1) Cost of Equity Capital 2) Cost of Debenture Capital 3) Cost of Preference Capital 4) Cost of Retained Earnings
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2. Q1 OR The TATA Mills Ltd. has the following cost of capital along with the indicated book value and market value weights.
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3. Q1 (b) Write a short note on : Reliance Co. issues 10 year, 10,000 10% preference shares of Rs. 10 each. Commission paid to the brokers is Rs. 2 per share. Calculate the cost of preference capital if these shares are issued at par, 5% premium, 5% discount. Shares are to be redeemed at 10% premium.
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4. Q1 OR Write a short note on : Capital Asset Pricing Model.
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UNIT - II

1. Q2 (a) Explain various factors which influence the capital structure of a company.
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2. Q2 OR The following is the data regarding two companies x and y belonging to the same equivalent risk class.
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3. Q2 (b) Write a short note on : Types of Dividend Policy.
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4. Q2 OR Write a short note on : MM Approach under dividend theory.
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UNIT - III

1. Q3 (a) Prepare an estimate of working capital requirement from the following information of a trading concern.
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2. Q3 OR Explain the techniques of Inventory Management.
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3. Q3 (b) Write a short note on : Debtors Management.
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4. Q3 OR Write a short note on : Cash Management.
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UNIT - IV

1. Q4 (a) Bharat International, an India based multinational company, is evaluating an overseas investment proposal. Bharat Internationals exports of generic drugs have increased to such an extent that it is considering a project to build a plant in the U.K. The project will entail outlay of £ 50 million and is expected to generate the following cash flows over its four year life.
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2. Q4 OR Explain the following concepts of Multinational Working Capital Management. 1) Cash Management 2) Credit Management 3) Inventory Management
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3. Q4 (b) Write a short note on : Multinational Capital Budgeting Decisions.
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4. Q4 OR Write a short note on : Multinational Management Accounting.
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UNIT - V

1. Q5 (a) S Co. is being acquired by L Co. on a share exchange basis. Their selected data are as follows :
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2. Q5 OR Vodafone Ltd. decides to take over Hutchison Ltd. following is the data available.
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3. Q5 (b) Write a short note on : Reasons for mergers and Acquisitions.
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4. Q5 OR Write a short note on : 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.