BCom In Accounting & Finance (BCAF) SEM I 2017 2018 March 2018 F.Y.BCAF SEM I (CHOICE BASE) (R 16) FIN. MGT. I Question Paper - Mumbai University | munotes

Questions asked in this paper

1. Q1 All questions are compulsory subject to internal choice
2. Q2 Working notes form part of your answer
3. Q3 Use of simple calculator is permitted
4. Q1 A.State whether the following statements are true or false (Any 8): 8 marks
5. Q1 Appropriate investment decision helps in profit maximisation only
6. Q2 Simple interest is the interest for one period added to the principal amount to get principal amount for the next period
7. Q3 ARR means Authentic Rate of return that is generated by the activities of the firm outside the business
8. Q4 Combined leverage is the sum of financial and operating leverage
9. Q5 Trading on equity has no impact on debenture earnings
10. Q6 Cash credit can be availed only by debit card holder
11. Q7 Each Commercial paper has a minimum denomination of Rs.1,00,000
12. Q8 Business finance can be broadly defined as the activity concerned with planning, raising, controlling, administering of the funds used in the business
13. Q9 Rate of Income tax is an effective factor of calculating cost of equity
14. Q10 WACC means Weighted Average Credit of Capital Match the following(any7) (07)
    • Q.P. Code: 30680
15. Q2 Find the present value of net cash flow using discounting factor as 15% with the help of information given below and also comment at which discount rate it is nearly equal to the cash outflow of Rs.7200000 (15)
16. Q2 A. Mr.Arundeposits Rs.2,20,000 every 6 months in his fixed deposit for a period of three years at compound interest rate of 10%p.a. What will be an amount at the end of three years? If the same deposit is made for Rs.1,10,000 every three months for the period of three years, will he get the same amountback ? (08)
17. Q2 B.Mr. Shyamlalwants to purchase a machine worth Rs. 4,75000 The cash inflow - Rs.1,00,000 p.a Calculate the present values of cash inflows for a period of 5 years and also find the total present value of cash inflows and advice Mr.Shyamlal whether he should purchase the machine 13.5% Debentures ( FV 100) 4,00,000 In the current year the company earns Operating Profit (EBIT) of Rs.10,00,000. You are required to calculate Financial Leverage and EPS assuming tax rate to be 45%
18. Q3 B. From the following data calculatethe Operating Leverage and Contribution (in Rs.), given that Total Fixed Cost is Rs.2,00,000 and Sales Rs.15,00,000 with Variable Cost as 30%
    • Q.P. Code: 30680
19. Q3 Mr. Krishna has forwarded the following data for the financial year ending 2017 all the leverages and earnings per share. Also calculate dividend per share if 80% of NPAT is distributed as dividend. (15) Sales- 44,000units at Rs. 100 per unit, Variable cost is 40%, Fixed cost Rs. 9,50,000(other than interest) Tax rate is 50% The capital structure of the company comprises 15% Debentures of Rs. 100 each and number of equity shares are 10,000 with face value of Rs. 10 each
20. Q4 Bin Ltd. is utterly confused as to which alternative to select for financing its expansion plan.Calculate cost of securities as per information given below and suggest the one with lowest cost of capital. (15)
21. Q1 3,00,000 13% Debentures of Rs.10 each issued at Rs. 20each, redeemable at Rs. each. Tax rate applicable 40% 22 marks
22. Q2 40,000,11% Redeemable Preference Shares of Rs. 10 each issued at 50% premium and redeemable at 75% premium
23. Q3 2,00,000 Equity shares of issued at a premiumRs. 20 per share. The dividend payable normally is 15% and the expected growth rate is 5%
24. Q4 Himalaya Ltd has the following capital structure: 15 marks
25. Q1 60,000 Equity Shares of Rs. 10 each,
26. Q2 35 14.5% Rs. 10 each,
27. Q3 25,000 10% Redeemable Preference Shares of each
28. Q4 The expected dividend per share is Rs. 20, which is to grow by 10% Assuming the tax rate to be 30%, you are required to calculate WACC as per Book Values
29. Q5 a. Explain the term Financial Management and distinguish between Profit and Wealth
30. Q5 b.Explain with examples the different sources of finance. 7 marks
31. Q5 Write short notes (on any 3): 15 marks
    • a. Difference between Future and Present Value
    • b. Leverages Scope of financial management
    • d. Different methods of calculating Cost of Equity
    • e. Different Risks associated with investment

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