B.Com In Banking & Insurance (BCBI) Sem III ATKT FINANCIAL MGT Question Paper - Mumbai University | munotes

Questions asked in this paper

• (3) Figures to the right indicate full marks,

1. Q1 A. Choose correct alternative, (any 8). 8 marks
   • 1. NBFC stands for
   • 2. Cost of preference share is denoted by
   • 3. Net present value of a machine
   • a) PV of cash inflow less cost of investment
   • b) PV of cash inflow divided by cost of investment
   • c) PV of NPAT less cost of investment
   • d) PV of cash inflow less average cost of investment
   • 4. To achieve wealth maximisation finance manager has to take careful decisions in
   • c) Dividend. d) all of the above
   • 5. Capital structure of the firm may be defined as
   • a) The firms mix of different source of long-term finance
   • b) The firms stock turnover ratio
   • c) The market imperfection that the firm's manager can exploit
   • d) None of the above
   • 6. Minimum rate of return that a firm must earn in order to satisfy its investors is also known
   • a) Average rate of investment b) Weighted Average Cost of Capital
   • c) Net profit ratio. d) Average cost of investment
   • 7. Business risk can be measured by
   • c) Combined leverage d) None of the above \
   • 8. Standard deviation as a measure of risk is
   • a) Same as variance. b) The square of variance
   • c) Square root of variance. d) None of the above
   • 9. FDI means
   • 10. Interest on Debt is calculated on
2. Q1 B. State True or false (any 7). 7 marks
   • 1. Public deposit is a secured loan
   • 2. Equity shares are the creditors of the company
   • 3. DOL = EBT
   • 4. Depriciation is a non-cash item
   • 5. EBIT is also known as Operating profit
   • 6. GDR holders have no Voting rights
   • 7. Different source of finance have same cost of capital
   • 8. Section where FDI is prohibited are Chit F unds, Lottery business, Gambling, Betting etc Trade credit is a source of working capital
   • 10. Interest is paid to debenture holders is Q.2 Super Ltd. is considering following financial plans. (15) Total funds to be raised Rs. 200 Crores Rate of interest on Debt - 12% Dividend on Preference shares — 9% Face value of equity shares Rs.10/- each , Expected EBIT Rs. 80 Crores Determine EPS & suggest suitable plan for the company
3. Q2 P The firm X & Y have the following information. 8 marks
4. Q2 Q The capital of J Ltd is as under. Calculate Weighted Average Cost of Capital 7 marks
5. Q3 A company has an investment opportunity costing Rs. 40,000 with the following expected
6. Q3 Super Ltd. is considering following financial plans. Total funds to be raised Rs. 20,00,000 Rate of interest on Debt - 12% Dividend on Preference Shares 9% 15 marks
7. Q4 A company has an investment Rs, 40,000 with the following y Using 10% as the cost of Capital (rate of discount) determine the NPV,
8. Q4 ABC Ltd. invested Rs. 1,00,000. Cash flows are as follows. 15 marks
9. Q5 Write short notes on (any 3). 15 marks
   • 1. Public Deposits
   • 2. Sources of Fixed Capital
   • 4. Types of Preference Shares
   • 5. Over Capitalization
10. Q5 A. Explain the RBI Guidelines for Public Deposits. 8 marks
    • B. State difference between Over Capitalization & Under Capitalization. 7

Read from the scan above, so a character or two may differ. The scan is the original.