BCom In Accounting & Finance (BCAF) Sem VI 2019 20 Oct 2019-20 FINANCIAL MANAGEMENT III Question Paper - Mumbai University | munotes

Questions asked in this paper

1. Q1 The fundamental analysis is an attempt to estimate the worth of a security by considering the earning potential of company
2. Q2 Regression analysis is used for diagnosing the factors determining industry output demand
3. Q3 Dividend Discount Model is also known as Jensen's model
4. Q4 Investment analysis means to make a comparative study of the type of industry, kind of security and nature of securities etc
5. Q5 Debt instrument carry all risk
6. Q6 Technical analysis is based on the study of market data in terms of factors which affecting supply and demand schedules such as prices volumes of trading etc
7. Q7 Inflation affects the rate of return
8. Q8 Modigilani and miller hypothesis is a support of the relevance of dividends
9. Q9 Candle stick is modified version of pie chart
10. Q10 The risk affects the companies is unsystematic risk
    • (B) Match the following columns: (Any 7) 7
    • (A) Following information is relating to the financial statements of Dinesh Ltd. 15
11. Q1 Gross Profit Ratio 2)Net Profit Ratio 3)Return On Equity 4)Assets Turnover Ratio
12. Q5 Return on Investment 6) Capital Gearing Ratio 7) Liquid Ratio 8) Debtors Turnover Ratio
13. Q2 (B) Leo Co. Ltd. considering to invest in the following one of the bonds you are requested to recommend which bond should be purchased? (08)
14. Q2 (C). Titan Co. Ltd requested you to find out the market price of share using: Gorden’s Model Cost of Capital Internal Rate of Return Growth Rate in dividend
15. Q3 (A) Following the information is given in respect of three mutual funds. and market: The risk free return is 6%.Calculate Treynors ratio and Sharpe’s ratio and rank the portfolio 8 marks
16. Q3 (B) The Jack & Jones Co. Ltd. Currently sell their shares for = 20 per share. The company’s finance manager anticipates a constant growth of 10 % and at the end of year dividend of 5.00
    • (1) What is expected rate of return? If the investor requires 15% return should be purchase the stock?
17. Q3 (C) Kalakan Co. Ltd. has a Capital of = 20, 00,000 divided into equity shares of 10 each The shares are currently quoted at Rs. 15 per share. The company proposes declaration of dividend of per share at the end of financial year. The capitalization rate for the same class of company is 20%. (15) What will the market price of the share at the end of year using MM Model if,
    • (i) Dividend is declared
    • (ii) Dividend is not declared Assuming that the company pays the dividend and has net profits of = and makes new investment of = during the period. How many new shares must be issued?
18. Q4 (A) The earning per share of the company Rs. 8 and the rate of capitalization is the company is 10% p.a. the company has an option of Dividend Payout Ratio 25% or 50% or 75% . Using Walters’s model compute the market value of the company’s share and comment on it, if the required rate of return is (i) 15% p.a (i) 10% p.a (iii) 5% p.a. (15)
19. Q4 (B) From the following information calculate Beta of a security: Return on market portfolio % 8 marks
20. Q4 (C) Marines Ltd. has issued a debenture with the face value of Rs. 1,000 bearing interest rate is 20% p.a maturing after 6 years at par. The expected rate of return is 15%. Find the present value of bond? (07)
21. Q5 (A) What is strategic financial management? Explain any 6 functions of strategic financial
22. Q5 (B) What is technical analysis? And explain the charting techniques of technical Write short note (Any 3) (15) 7 marks
23. Q2 Principles of financial plan
24. Q4 Portfolio diversification
25. Q5 Disadvantages of mutual fund

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