B.Com In Banking & Insurance (BCBI) Sem III 2017 2018 Nov 2018 S.Y.BBI SEM III (CHOICE BASE) FIN.MGT Question Paper - Mumbai University | munotes

Questions asked in this paper

• (b) Figures to the right indicate full marks

1. Q1 Answer any Eight from the following: A Match the following B Fill in the blanks (Answer any Seven): [07] 8 marks
2. Q1 Standard debt equity ratio is
3. Q2 Finance function is performed in all the
4. Q4 analysis the value of a unit of money of different time
5. Q5 helps the investor to decide the return on investment
6. Q6 are very risky
7. Q7 NPV considers of money
8. Q8 Retirement compensation is treated as
9. Q9 Capital rationing is selection of investment proposal under
10. Q10 Capital structure decisions are taken in view of the purpose of
11. Q2 Ltd. is considering three proposals for its capital expenditures:
    • A. The total expenditure is budgeted as Rs. 30,00,000 has been utilised for certain expansion plans. The balance Rs. 40,00,000 needs to be allocated amongst any [15] two of the following proposals. Tax rate is 30%. Evaluate the same with the help of Payback period.The details of the proposals are: Additional working capital at 75,000
    • Q. P. Code: 22155
    • B. From the following details calculate: 15
    • a. Net Present Value at discounting factor of 15%
    • b. Profitability Index Expected life of each project is 4 years. Also rank the projects From the following Capital structure calculate overall cost of capital for [15] Source Book Value Market After tax cost of
    • B. A ltd has the following capital structure as on December,2016. 5000 equity shares of Rs.100 each 500000 The Equity shares of the company are quoted at Rs.100 and the company is expected to declare a dividend of Rs.9 per share for 2016.The company has registered a growth rate of 5% which is expected to be maintained .The tax rate applicable to the company is 15
12. Q1 The weighted average cost of capital
13. Q2 The revised weighted average cost of capital, if the company raises additional term loan of Rs.5,00,000 at 15% .In such a situation the company can increase dividend from Rs.9 to Rs.10 per share but the market price of the share will go down to Rs.90
    • Q. P. Code: 22155 AB company needs Rs. 5,00,00,000 for the construction of a new plant. The following [15] three financial plans are feasible
    • a. The company may issue 50,00,000 ordinary shares of Rs.10 each
    • b. The company may issue 25,00,000 ordinary shares of Rs.10 and remaining amount may be collected by issue of 2,50,000 debentures of Rs.100 each bearing an 8% rate of interest
    • c. The company may issue 25,00,000 ordinary shares @Rs.10 each and remaining amount as preference shares of Rs.10 each bearing an 8% rate of dividend If the expected EBIT ,which the company may earn is Rs.40,00,000 then suggest which capital structure alternative the company should select. Assume tax rate to
    • A. From the following data, calculate the MARKET PRICE of a share of LSK Ltd., under 8
    • (1) Walter’s formula; and (11) Dividend growth model
    • B. If Ocimum group has of the following three financial plans. Interest @12% per annum on debts in all cases. Tax rate 25% . Comment which plan is more beneficial for the owners of the company on basis of its net earnings with 7
    • A. What is venture capital? What are its features? 8
    • B. Explain factors determining dividend policy. Write short notes(any three) 1 Cost of capital [15] 3 long term sources of finance 4 Time value of money 7

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