BCom In Accounting & Finance (BCAF) SEM I 2016 2017 March 2017 FYBAF SEM I .17 FIN. MGT Question Paper - Mumbai University | munotes

Questions asked in this paper

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1. Q2 Use of only simple calculator is permitted
2. Q3 notes should form part of your answer 2.1) A) Fillin the blanks (any 8 out of 10) 08
3. Q1 The financing decision involve the most appropriate mix of 3 marks
4. Q2 is the value of cash ata fixed time in future
5. Q3 is the inverse of discounting A Leverage arises when the firm raises finance by fixed interest bearing securities
6. Q5 Cost affects the raising that ca pital at the time of issue of new securities,
7. Q6 Dividend distribution tax affects the cost of
8. Q7 allotted to
9. Q8 Loan for machinery is finance 9, Ifthe interest rate is 12% compounded semiannually and deposits will be made for 10 years, then the rate of interest will be %
10. Q10 ‘Trading equity is used to increase Shareholders State True or False (any 7 out of 10) 07 Discounting technique is utilized to shows future value of money invested
11. Q2 Equal.instalments at equal intervals.will result in any annuity By The of finance manager is tomake decisions in human resources area ‘Operating leverage exists ifthere is an operational fixed cost
12. Q5 Combined leverage as low as possible
13. Q6 Cost of is not considered for Cost of capital 4 7, credit for business is temporary advance from the bank Dividend to equity shareholders reduces tax liability of the company 10, The objectives of financial management is to optimise the use of funds
    • Q.P. Code :00289
14. Q2 A) Sunny started his business by investing Rs.6,50,000 in his firm. Find the present value of the fo cash flow streams if the discount rate is 12percent PV factor of Re 1
    • B) Mr. Shine deposits in bank Rs.5,00,000 for at 12% rate of interest. How much will he rec after 9 years if the investment is compounded (i) semi annually (ii) quarterly?
15. Q2 A) Mr. Rashi deposits Rs.1,00,000 annually in a bank for 7 years. The deposit earns 10% per annum What is the future value of this an nuity at the end of 7 years?
    • B) Mr, Rihaan wants to go for higher education after 7 years. How much should he deposits on pres day in that he receives Rs.20, 00,000 after 7 years. Rate of interest is 10%
16. Q3 Rock Ltd. Has equity share capital (Rs.100 per share) of Rs.10, 00,000. The sales of Rock Ltd is Rs.50, 00,000 per annum, variable cost is 75%, Fixed cost is Rs.8, 00,000. Tax rate is 50%. Calcule operating leverage, financia! leverage and combined leverage under following situations:
    • i) If company borrows 9% Bank loan of Rs.10; 00,000 If the company issues 10% debentures of Rs.12, 00,000. (face value Rs.100)
17. Q3 Operating leverage, Financial leverage and combined leverage from the following Debentures of Rs.100 each 150000 200000
    • Q.P. Code :00289
    • A) Simply Ltd. Issued Rs.50 Lakhs, 14% debentures of Rs.100 each. Tax rate is 40%. Calculate the 08 debt in following cases: 1, If the issue is at par with 5% floatation cost
18. Q2 If the issue is at 10% premium with 5% floatation cost
    • B) (i) Shivin Ltd has 4000 equity shares of Rs.100 each at par. The company pays dividend of Rs.10 per 07 share and growth in dividend is expected to be 4%. If the market price of equity share calculate the cost of existing equity share. —
    • ii) Shilpa Ltd. has 3800 equity shares of Rs,100 each at par. The company pays dividend of 12% and growth in dividend is expected to be 6%; If the market price of equity share is Rs.175, calculate the cost of existing equity share Determine the weighted average cost.of capital o Sun and-Moon Ltd on the basis of book value and 15 Type of Capital Moon Ltd. (Rs.) Cost of Capital Tax rate is 50% 15 Type of Moon Ltd (Rs.) Cost of Capital
    • A) Differentiate between Debentures and equity shares. 08 Explain the scope of financial management 07 short note on any three: 15
19. Q1 Operating Leverage Weighted average cost of capital of Present value

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