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

Questions asked in this paper

• 2. Figures to the right indicate full Marks

1. Q3 Working note should be part of Answer
2. Q1 (A) Match the column any 8 1.Working Capital 1.Long term source of finance 2.Commercial papers 3.Preference Share capital 3.Objective of F.M 6.Wealth Maximization 6.Short-term money market 7.Constant payout 7.Expensive source of Finance 9.NI Approach 9.Considers Time value of money 8 marks
3. Q1 B) State whether the following statements True Or False.( Any 7)
4. Q1 Standard Debt Equity Ratio is 2:1
5. Q2 Net present value, considered time value of money
6. Q3 Capital budgeting decisions are short term decisions
7. Q4 WACC is always calculated with reference to book value different sources of funds
8. Q5 Continuous compounding occurs when interest is compounding daily
9. Q6 interest, interest for each year is different
10. Q7 In present value tables, all values are less than 1
11. Q8 Gordon model supports the view that dividend is relevant for value of the firm ‘ 9. IRR stand for Internal Rate of Return
12. Q2 A) Sharayu Company Itd has invested in a Machine at a cost of Rs.5,00,000 Estimated life 5 Years, tax rate is 40% . 15 Marks YEAR Profit Before Depreciation and Tax Calculate Payback Period , Pay back profitability and Average Rate of Return
    • (B) From the following details calculate: 15
    • (a) Net Present Value at discounting factor of 12%
    • (b) Profitability Index Expected life of each project is 4 years. Also rank the projects
13. Q3 (A) From the following Capital structure calculate overall cost of capital for: Source Book Value Market Value After tax cost of 15 marks
    • (B) A Ltd. Has the following capital structure as on December, 2016. The Equity shares of the company are quoted at Rs. 100 and the company is expected 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 50% 15
    • (a) The weighted average cost of capital
14. Q4 needs Rs. 20,00,000 for the construction of new plant. The following three financial plans are feasible. ( 15 Marks)
    • (a) The company may issue 2,00,000 ordinary shares of Rs.10 each
    • (b) The company may issue 1,00,000 ordinary shares of Rs.10 and remaining amount may be collected by issue of 10,000 debentures of Rs.100 each bearing an 8% rate of interest
    • (c) The company may issue 50,000 ordinary shares @ Rs.10 each and remaining amount as preference shares of Rs.10 each bearing an 8% rate of dividend. 7 If the expected EBIT, which the company may earn is Rs.20,00,000 then suggest which capital structure alternative the company should select. Assume tax rate to be 40%
15. Q4 (A) From the following data, calculate the MARKET PRICE of a share of LSK Ltd.,under y Walter’s formula; and (ii) Dividend growthmodel
    • (B) A deposit of Rs.1,00,000 is made to earn interest @ 12% p.a. Find out the future value of this deposit if the compounding period is : 7 Marks
16. Q5 A) State the objective of the financial management? 8 marks
    • B) Explain Long term sources of finance. 7
    • C) Write short notes (Any 3) 15
    • (c) Short term sources of Finance : (d) Time value of money
    • (e) NI Approach

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