Bachelor Of Management Studies (BMS) SEM III 2017 2018 Nov 2018 HUMAN RES. RECRUITMENT SELECTION Question Paper - Mumbai University | munotes

Questions asked in this paper

1. Q1 is compulsory
   • 2. Q2 to Q5 having internal options
   • 3. figures to the right indicate full marks
2. Q1 A Multiple Choice Questions 8). 8 marks
   • 1. NBFC means
   • c) Non-Bankrupt Financial Company d) None of the above
   • 2. Fixed dividend is not paid to
   • d) none of them
   • 3.IRR stands for
   • a) Interest Rate of Return b) Inclusive Rate of Risk c) Internal Rate of Return d)Initial Rate of Risk
   • 4. Net Profit After Tax is Rs. 80,000 and Tax is Rs. 20,000 then Rate of Tax is
   • 5. As per rule of 72, if the interest rate is 10% the doubling period will be
   • 6.Present Value =
   • 7. Operating Leverage=
   • 8. Function of finance manager is
   • c) Working Capital Management d) All of the above
   • 9. At indifference point, EPS is
   • 10. Interest on debt is calculated on
   • Q. P. Code: 23047
3. Q1 B State whether True or False.(Any 7) 7 marks
   • 1. Interest is paid to Equity Shareholders
   • 2. Cost of existing share capital and fresh issue of capital are same
   • 3. Sectors where FDI is prohibited are Chit Funds, Lottery Business, Gambling and Betting, etc
   • 4. Capital Budgeting is a part of investment decision
   • 5. Modiglian-Miller (MM) Model is difficult to apply in practice
   • 6. Different sources of Finance have same Cost of Capital
   • 7. Bill Discounting means providing funds against Bill
   • 8. If I make one deposit today and wish to know how much it will be accumulated in the future, that value is called Present Value
   • 9. Depreciation is a Non-Cash item
   • 10. Cash Credit is an arrangement under which a customer is allowed an advance upto certain limit against credit granted by bank
4. Q2 A_ Following are the details of two companies A and B Interest on Debentures (Rs) 80,000 Calculate: 1.Operating Leverage and 2.Financial Leverage of two companies Following are the details of Capital Structure of Company X Ltd. (07) Sources Of Funds Amount in Rs Cost of Capital After Calculate Weighted Average Cost of Capital 8 marks
   • Q. P. Code: 23047
5. Q2 P. Gates Ltd has the following Capital Structure: Source of Funds Amount (Rs) Equity Shares of Rs.10 each 40 The company requires Rs.30,00,000 to finance expansion programme for which the following alternatives are available: 15 marks
   • 1) Issue of new Debentures and Preference Share are in equal proportions li) Issue of Preference Shares to the extent of 20% and 80% by Debentures iil) Issue of new 15% Debentures After Expansion Earnings Before Interest.and Tax (EBIT) is Rs.60,50,000 The Income Tax rate is 50% Recommend the best alternative with suitable reason
6. Q3 A Find the present value of Rs.10, 000 receivable 6 years hence, if the interest rate is 10%? B Calculate the Expected Return and Standard Deviation from the following details Ben Ltd Speed Itd is considering a project which cost Rs.8, 00,000.Tax rate is 30 %.The company uses Straight Line Method of Depreciation and the proposed project has cash inflows before depreciation and tax as Follows: (15) Calculate Internal Rate of Return
   • Q. P. Code: 23047
7. Q4 A Following are the details of Noble Ltd who require Rs.10,00,000 for a new Plant. Expected Earnings Before Interest and Tax (EBIT) Rs.5,00,000.It has three alternatives to Finance the Project:
   • 1) Debt Rs.1,00,000 and Balance by Equity Share li) Debt Rs.3,00,000 and Balance by Equity Share ili) Debt Rs.6,00,000 and Balance by Equity Share The company’s Equity share is currently being sold at Rs.30 per Share Interest on Debt: Recommend the best alternative with suitable reason Ltd wants to invest in a Project. Two options available are Project P and Project Q Following are the details: (15) Cost of Investment (Rs) 8,00 Calculate Net Present Value for both the Projects and Recommend which Project should be
8. Q5 A Explain the Meaning and Significance of Corporate Finance. the RBI Guidelines for Public deposits (07) 8 marks
   • Q. P. Code: 23047
9. Q5 A Write short note on. Any 3 out of 5. 15 marks
   • 1. Under capitalization
   • 2. Ordinary Shares
   • 3. SEBI Regulations
   • 4. Principles of Corporate Finance
   • 5. Convertible Debentures

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