B.Com In Investment Management SEM III 2022 2023 Oct 2023 INV. MGT. FINANCIAL MANAGEMENT Question Paper - Mumbai University | munotes

Questions asked in this paper

1. Q1 (A) State whether following statements are True or False: (Any Eight) 8 marks
2. Q1 The duties ofa Financial Manager is to determine which marketing strategy to use to promote a
3. Q2 The payback period considers the time value of money
4. Q3 Gross Profit and Net Profit both give the same amount of profit
5. Q4 Profit maximization is the goal of financial management
6. Q5 The Internal Rate of Return is very simple to calculate
7. Q6 Dividends are the cash flows returned to the shareholders
8. Q7 EVA stands for Economic value added
9. Q8 The ratio of debt and equity must be equal
10. Q9 Cost of equity is zero
11. Q10 Secondary market is the market for fresh issue of shares \ 1. (B) Match the following: (Any Seven) (7)
    • B. Own capital Il. Deciding present value of future
    • F. Replacement of equipment V. Profit after tax + Depreciation
    • H. Retained earnings VII. rate of return , Ill. Suggested by Durand
    • J. Discounting factor technique IX. on debt & equity
12. Q10 Capital — Calculate the weighted average cost of capital from the following data of Blazing Arrow Co. (15) , | Equity Shares (of Rs. 100 Face value) 6,00,000 (There are no retained profits or securities premium). A dividend of 10% a year has been paid on the equity shares in recent years. All of the company's securities are quoted on the local stock exchange. The prices of these securities have recently been at par (i.e. market and issue price same) VCD: SEM: FINANCIAL MANAGEMENT 2% Hours Marks: 75
13. Q2 B) Calculate the Market price of share as per Walter Model and Gordon Model. Internal Rate of Return 20% Cost of Capital 16% 15 marks
14. Q3 A) Samrat Television has the following capital structure: “After tax costs are as under: Compute the weighted average cost of capital 15 marks
15. Q3 B) M/s. Tulip & Co. has an investment opportunity costing Rs. 4,00,000 with the following expected net cash flow (i.e. after taxes and before depreciation): (15) Using cost of capital (rate of discount) determine the Net Present Value and Profitability Index with the help of 10% discounting factor and give your 4, A) From the following Capital structure of Perfect Ltd. Calculate overall cost of capital, using (a) book value weights and (b) market value weights. (15) FINANCIAL MANAGEMENT 2% Hours Marks: 75 Equity shares of Rs. 10 | 4,50,000 9,00,000 q The after tax cost of different sources of finance are Equity share capital 14%, Retained Earnings 13%, Preference shares and Debentures 5%
16. Q1 Determine the Payback Period from the following information: Cost of the Project= Rs.5,20,000 8 marks
17. Q2 A deposit of Rs. 10,000 is made to earn interest @ 12 % p.a. Find out the future value of this deposit if the compounding period is: (7)
    • (a) Annually
    • (b) Half-yearly
    • (c) Quarterly
    • (d) Monthly
    • (e) Daily
    • (A) State Features of Corporate Finance. 8
    • (B) Explain capital structure. 7
18. Q5 Write short notes on: (Any Three) 15 marks
19. Q1 Cost of equity
20. Q2 Cost of Preference shares
21. Q3 Weighted average cost of capital 4, Features of Bond
22. Q5 Executive finance functions of Finance Manager

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