BCom In Accounting & Finance (BCAF) SEM II 2016 2017 Feb 2017 FYBAF SEM II ATKT EXAM FIN. MGT. Question Paper - Mumbai University | munotes

Questions asked in this paper

1. Q1 (a) State the following sentences are true or false. (Any 8) Debentures are included in Shareholders Fund 8 marks
   • 2. Successful finance manager should be Lazy
   • 3. EPS stands for Expenses per share
   • 4. Debentures are not redeemable
   • 5. PV is the future value of the current A/c
   • 6. Finance is a life blood of an Organisation,
   • 7. Risk Capital is Equity Capital
   • 8. Debentures are redeemable
   • 9. Annuity is the stream of constant cash flow occurring at regular interval
   • 10. Money has time value,
   • (b) Match the following. (Any 7) ' 1. Loan fund blood of an organisation 7
   • 2. Consider time value of money b. FV/(1 +r)!
   • 8. Cost of equity h. Future Cost
   • 10. Finance j. Debentures
2. Q2 Nishad Electronics Ltd. is considering purchasing a machine. There are 2 machines are available F in the market i.e. machine A and machine B each costing Rs. 2,00,000. Discounted rate is 10% p.a cash flow after taxation is expected as follows: Calculate Net Present Value and also indicate which machine should be purchased by the company with comparing post payback profitability
3. Q2 RUP industry Ltd. initially has an investment proposal of Rs. 3,00,000 with life of 5 years. It provides depreciation @ 20% on original cost. Tax Rate @ 30%. The expected profit before depreciation & tax for next 5 years is as follows: You are required to calculate Net Present Value of an investment with 10% discounting factor. (15)
4. Q3 Calculate Cost of Debt for the following inflows: (Rs in Lakhs
5. Q3 Two companies X and Y are in the same type of business hence have similar operating risks. The capital structure of each of them is different. The details are: Tax rate @ 50%. You are required to weighted average Cost of capital of each company
6. Q4 (a) Calculate Present Value for the following: Future value Rs. 5000 receivable after 8 years 15% interest rate and future value Rs. 30,000 receivable after 4 years with 12% interest rate
7. Q4 (b) If you deposit Rs. today in a financial institution which pays 12% interest annual much will the deposit grow after 5" and years?
8. Q4 (a) Find out the present value of the following cash flows. Discounted rate @10%
9. Q4 (b) Suppose you have to deposit Rs. 90,000 per year in public provident fund account for What will be the accumulated amount in your PPF account after 5 years if the interest rate is 10% 5 marks
10. Q5 Write short notes. (Any 3) Nature of financial management
    • 2. Short term financing
    • 3. Cost of Debt J 4. Importance of financial management,
    • 5. Limitation of financial management

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