Bachelor Of Management Studies (BMS) SEM III 2016 2017 Sep 2017 CORPORATE FINANCE Question Paper - Mumbai University | munotes

Questions asked in this paper

1. Q1 Answer any two from the following.(7.5*2) 15 marks
   • a) What is under capitalization? What are causes of this?
   • b) What is Public Deposits? Explain features of Public Deposit
   • c) What is Foreign Capital? Explain need for foreign capital
2. Q2 Attempt any two.(7.5*2) 15 marks
   • a)The Capital structure of a company consists of equity shares of rs.50,00,000 .10% Preference Share capital of rs.10,00,000& 12% Debentures of rs.30,00,000.The cost of equity capital for company is 14.7% & income tax rate is 30%.Calculate WACC > Ltd. Has three plans for financing its project
   • a)Total-investment to be raised rs.2,00,000
   • b) Following are financing plans Cost of Debt is 8%.Cost of Preference shares is 8%.Tax rate is 50%.EBIT is rs.80, 000.Face value of equity shares is rs.10 each. Determine EPS
   • c)Megha Ltd. Sells 200 units per annum.The selling price per unit is rs.30,000 & variable cost is rs.10,000.The fixed operating cost is rs.10,00,000.Compute Operating Leverage. If interest is 6 Q3.Attempt any two.(7.5*2) (15)
   • a)XYZ Itd. Is implementing a project with initial capital outlay of rs.8,000.Its cash flow is as Expected rate of return is 10%
   • b)Dhaval Ltd. Purchases a machine where original cost is rs.50,00,000.Life is 10 years & scrap The machine generates Profit after tax which is given below for 5 years Profit After Tax (in rs
   • c)The following information of stock A & Stock B under possible states of nature
   • 1) Calculate Standard Deviation of Stock A & B
3. Q4 Answer any two.(7.5*2) 15 marks
   • a)Explain GDR briefly
   • b) Explain any three sources of short term finance
   • c) Describe systematic risk project requires initial outflow of rs.10, 00,000.It generates a cash inflow as follows: Its cost of capital is 10%
   • a)Payback Period
   • c) Profitability Index

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