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

Questions asked in this paper

• 3. Figures to the right indicate full marks

1. Q1 A MATCH THE COLUMN (ANY 8 OUT OF 10). 8 marks
2. Q1 B STATE WHETHER TRUE OR FALSE. (ANY 7 OUT OF 10) 7 marks
   • 1. IRR method does not take account of the time value of money
   • 3. Depreciation is a Non-Cash item
   • 4. EBIT is also known as operating Profits
   • 5. An under capitalized company is the one which is highly inefficient in its operations
   • 6. Assets like Financial instruments and property are given as security in case of cash
   • 7. NPV does not take into account the time value of money
   • 8. WACC is the overall cost of Capital Public Deposits are Secured Loans from Company’s perspective
   • 10. The maturity periods of commercial papers are generally 90 — 180 days
3. Q2 A Following are the details. Calculate: 1.Operating Leverage and 2.Financial Leverage 8 marks
4. Q2 (B) Following are the details of Capital Structure of Company X Ltd. Calculate Weighted Average Cost of Capital using: 7 marks
   • i. Book Value as weights
   • ii. Market Value as weights can be raised through one of the three following option: (15)
   • a) Issue equity shares of Rs.100 each at par
   • b) Raise loans at 15% Interest Present Paid up capital is and average EBIT is Rs.12 Lakhs. Assume Income tax at expansion EBIT is expected to be Rs.15 Lakhs. Calculate EPS under the three Financing options. Which alternative would you suggest and why?
5. Q3 Ball Ltd wants to invest in a Project. Two options available are Project P and Project Q Following are the details: (15) Calculate Net Present Value for both the Projects and recommend which Project should Calculate IRR by 15% and 16%
6. Q4 (A) Anita has invested Rs.20,000 in a scheme @12%p.a compounded quarterly. Find out what will the amount become at the end of two years. Will your answer differ if interest is
7. Q4 (B) Find the present value of Rs.10,000 receivable 6 years hence if the rate of interest is 10%.will your answer differ if number of years is 3 years. (07)
8. Q4 (P) The rate of Return of Stocks of P and Q under different states of economy are presented below with probability. (15) Rate of Return on Stock P % Rate of Return on Stock Q %
   • a) Calculate expected rate of return and standard deviation of return for both the stocks
   • b) If you could invest in either Stock P or Stock Q, but not in both, which stock would you prefer and why?
   • c) What would be your decision if Stock Q probability changes to
9. Q5 (A) Define FDI. State the emerging trends in FDI in India. B Explain the RBI Guidelines for Public deposits (07) 8 marks
10. Q5 (A) Write short note on. (Any 3 out of 5). 15 marks
    • 1. Convertible Debentures
    • 3. Types of Preference Shares
    • 4. Protection of Depositors
    • 5. SEBI Regulations

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