Bachelor of Management Studies (B.M.S.) SEM VI 2018 19 May 2018-19 ELECTIVE FINANC STRATEGIC FINANCIAL ACCOUNTING Question Paper - Mumbai University | munotes

Questions asked in this paper

1. Q2 Working notes should form part of your answer
2. Q3 Figures to the right indicate full marks
3. Q1 (A) Choose the correct Option and rewrite the sentence: (Any Eight) 8 marks
4. Q1 |The most common form of dividend payment is
5. Q2 India is formed as one of the following
   • (c) Trust (d) Partnership with XBRL International
6. Q3 Estimate of cash flow is affected by
   • (a) Future Price Trend (b) Competition (c) Sales volume (d) All of the
7. Q4 ensures that less number of projects are selected by imposing capital
   • (c) Capital Rationing (d) None of the above
8. Q5 is surplus which is shared by
   • (a) Employees and Management (b) Employees and Shareholders
   • (c) Shareholders only (d) Employees, Management and Shareholders
   • (c) Communication (d) All of the Above
9. Q7 In Amalgamation, all the assets and liabilities of the transferor company are pooled into the books of transferee company at NPA stands for
   • (c) Non Privilege Assets (d) None of the Above Public deposits are accepted for a maximum of years
10. Q10 In India, Commercial Papers are issued as per the guidelines issued by
    • (c) Forward Market Commission (d) None of the Above
    • B) — State whether the following questions are True or False (Any Seven) 7
11. Q1 The dividend policy of a firm is decided by its Board of Directors XBRL provides reporting framework that controls risks analysis, the sensitivity of human factor is identified
12. Q4 rationing is caused by external factors only Fictitious assets are added to the share capital to get networth Disclosure is the principle of corporate governance
13. Q7 dividend is added to NPAT for calculation of EPS
14. Q8 Standard assets are those assets which do not have any risk
15. Q9 Term loan is an advance given by bank to its customers
16. Q10 Depreciation is an external source of finance The details regarding two companies are given below:- (08) By using Walter’s Model, calculate the value of an equity share of each of these companies when the dividend payout ratio is:
    • (B) The following data is available from KPO Ltd:- Rate of Return on investment = 16% Cost of Capital = 15% Calculate the market price of a share of KPO Ltd as per Gordon’s Model, if 7
    • (i) b = 40% b = 60% (ili) b = 80%
    • (C) Mark Ltd. belongs to arisk class for which the capitalization rate is 50,000 outstanding shares and the current market price 100. It expects a net profit of 5,00,000 for the year and the board is considering a dividend of 5 per share. Mark Ltd has a proposal for making new investments of ~ 10,00,000 You are required to calculate: 15
    • (i). Market Price per share when dividend is declared and not declared
    • (ii) No. of new shares to be issued by the company if dividend is declared and not declared
    • (iii). Calculate the market value of the firm when dividend is declared and not
    • (A). PAM Ltd is considering two mutually exclusive projects viz., Project A Project B which require cash outflow of The expected cash inflows are as follows: The company has a target return on capital of 10%. The risk premium for Project A and Project B are 2% and 8% respectively Which project should be accepted? Why?
    • (B) Ltd is considering two mutually exclusive projects. Investment outlay of both the project is ~ 2,50,000 and each is expected to have a life of 5 years under three possible situations their annual cash flows are as under Which Project is more risky? Why? 8
    • (C) Steep Ltd. is considering the following projects:- The total fund available is ~50,00,000. Determine optimal combination of projects assuming that the projects are divisible 7
17. Q4 (A) Tom Ltd in intending to purchase Jerry Ltd (by merger). The following details Number of Equity shares 3 You are required to calculate: 8 marks
    • (i) Present EPS of both the companies
    • (ii) If the proposed merger takes place, what would be the new EPS of Tom Ltd assuming that merger takes place by exchange of equity shares and the exchange ratio is based on market price per share
    • (B) following data is provided by Zampa Ltd for the year. You are required to calculate the missing figures? Weighted Average cost of capital 8% Return on Investment (%) ? 7
    • (C) The following information is pertaining to Akli Ltd. The cost details of the company are as follows: It is estimated that : 8
18. Q1 Raw materials remain in stock for 3 weeks and finished goods for 2 weeks
19. Q4 Customers are allowed 8 weeks credit
20. Q5 Assume production and overheads accrue evenly throughout the year Prepare a statement showing working capital requirement and also calculate Maximum Permissible Bank Finance (MBPF) as per first and second method
    • (D) X ltd as provided the details of advances. Calculate the provisions to be made in the Profit & Loss account For one year 3600 For two years 2400 For three years 1600 For more than three years 1200 7
    • (A) Define XBRL. Explain its advantages and disadvantages. 8
    • (B) Explain the advantages of Corporate Governance. 7
21. Q5 Write Short notes: (Any Three) 15 marks
    • (i) Sources of Working Capital
    • (ii) Merger
    • (v) Capital Rationing

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