B.B.A. LL.B. (Five Years) Sem 4 Financial Management 2014 Jun (100 marks) Question Paper - KSLU

Questions asked in this paper

UNIT - I

1. Q1 (a) Ravindra Ltd. has the following capital :
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2. Q1 OR Following are the details regarding the capital structure of a company :
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3. Q1 (b) Explain the importance of cost of capital.
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4. Q1 OR Explain how an empirical evaluation of a model is done.
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UNIT - II

1. Q2 (a) A company belongs to a risk class for which the appropriate discount rate is 10%. It currently has 25000 outstanding shares selling at Rs. 100 each. The firm is contemplating a dividend payment of Rs. 5 per share at the end of current financial year. It expects to have a net income of Rs. 2,50,000 and a proposal for making new investments of Rs. 5,00,000. Show that under the MM assumptions. The payment of dividend does not affect the value of the firm.
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2. Q2 OR Explain the factors determining dividend policy.
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3. Q2 (b) Explain the types of dividend policy.
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4. Q2 OR Explain the assumptions of MM approach under dividend theory.
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UNIT - III

1. Q3 (a) You are given the following estimates. As a Finance Manager, set up your calculations for the average amount of working capital required for the year, after making a provision of 10% for contingencies.
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2. Q3 OR What is Working Capital Management ? Explain the types of working capital and its significance.
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3. Q3 (b) Explain the advantages of Working Capital Management.
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4. Q3 OR Write a short note on : Inventory Management.
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UNIT - IV

1. Q4 (a) You are a Financial analyst for the little company. The director of capital has asked you to analyze two proposed capital investments - Projects X and Y. Each project has a cost of Rs. 10,000 and the cost of capital for each project is 12%. The project's expected net cash flows are as follows :
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2. Q4 OR Explain the working capital management in the multinational firms.
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3. Q4 (b) Write a short note on : Financial management of multinational corporations.
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4. Q4 OR Explain the various factors which are peculiar to multinational corporations.
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UNIT - V

1. Q5 (a) A company wishes to take over company B. The Financial details of the two companies are as under :
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2. Q5 OR Explain the different types of mergers along with examples.
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3. Q5 (b) Explain the characteristics of mergers.
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4. Q5 OR Explain the difference between mergers and take-overs.
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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.