BCom In Accounting & Finance (BCAF) SEM I 2023 2024 Dec 2024 FINANCIAL MANAGEMENT I Question Paper - Mumbai University | munotes

Questions asked in this paper

1. Q1 State whether the following statements are true or false. (Any 8) 8 marks
2. Q1 Financial Management is broadly concerned with acquisition and use of funds by a business
3. Q2 Profit maximization goal is inclusive of wealth maximization 4 High operating as well as high financial leverage is the safest approach to financial management ‘Certificate of deposit is a salelable device in the secondary
4. Q6 All liabilities shown in the balance sheet are sources of finance
5. Q7 Cost of retained on need not be calculated as it does not involve any cost
6. Q8 As per earning yield method ke is as Dividend Net proceeds In the the discount rate is normally equal to the cost of capital which is internally generated in the firm
7. Q10 Sinking fund is created to accumulate the specified amount of sum in future by way of regular periodic payment for some specific purpose
8. Q1 Match the following. (Any 7) 7 marks
9. Q3 Operating leverage. c. Short term source of finance
10. Q4 Cost of preference shares.d. EBIT
11. Q8 Investment in new projects. h. Own fund
12. Q9 Redeemable debenture. i. Increase in market price for share
13. Q10 Advances from customers. j. Dividend
14. Q2 A] Shyam fixed deposit has a maturity value of Rs. 1,30,000. It is initially purchased for Rs. 1,00,000 for years. Calculate simple interest rate per year, (08 Marks) 3 marks
15. Q2 B].Find out the present value of the following cash flows. Discounted rate @10%. 7 marks
16. Q2 A] Assume you invest in a deposit of RS. 10,000 at the end of each year for the next 3 years in an account paying 12% p.a. compounded annually. How much will you have in the account at the end of third year?
17. Q2 B]. Calculate the PV of Rs. 20,00,000, Rs.30,00,000, Rs.40,00,000 receivable at the end of 1* year, 2" vear and 3Rd year respectively at 10%p.a. (07 Marks)
18. Q3 Calculate the operating leverage, financial leverage and the combined leverage for the following firms: Production (in units) 17,500 6,700 | 31,800 Interest on Loan (Rs.) 1,25,000 | 75,000 Nil FINANCIAL MANAGEMENT SEM: L 75 Marks 21/2 Hours
19. Q3 From the following information calculate the operating leverage. financial leverage and combined leverage for the following firms. (15 marks) Variable cost p.u(%-of sales). 33 133 30 20
20. Q4 A] A company issues 25000,14,% debentures of Rs. 1000 each. The debentures are redeemable after the : expiry period of 5 years. Tax rate applicable to the company is 35% (including surcharge and education cess) to calculate the cost of debt after tax if debentures are issued at 5% discount, with 2% floatation cost (on face
21. Q4 B]. A company offers equity shares of Rs.10 each for public subscription at a premium of 5%. The company pays 2% of the issue price as underwriting commission. The rate of dividend expected by equity shareholders is 30%. You are required to compute the cost of equity capital. Will your cost of equity capital be different if it is calculated on the basis of market value of equity share which is only Rs. 13. (07 Marks)
22. Q4 Geeta limited has furnish the following information: Rate of tax. 30% Growth rate of dividend 15 marks
23. Q5 (a). Explain various sources of finance available to an enterprise in India 8 marks
    • (b) Differentiate between Financial Management and Financial Accounting Write a short note on (Any 3) (15 Marks) 7
24. Q1 Weighted Average cost of capital (WACC)
25. Q2 Distinguish between Operating Leverage and Financial Leverage
26. Q3 Wealth Maximization
27. Q4 Short Term Loans
28. Q5 Retained Earnings

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