Bachelor of Management Studies (B.M.S.) SEM V 2018 19 May 2018-19 Elective Fiance Strategic Financial Management Question Paper - Mumbai University | munotes

Questions asked in this paper

1. Q1 Answer the following (Any Two out of Three) 15 marks
   • A) The Earning per share of company are Rs 6 and the rate of capitalization applicable to the company is 10% p.a. The company has before it an option of adopting a payout ratio of 30% or 70% or 85%. Using Walter formula of dividend payout, compute the market value of the company share if the rate of return (R) is 1)15% p.a. 2) 5% p.a
   • B) What is XBRL? Explain the importance of XBRL?
   • C) “Newsletter” a weekly journal on the happenings in the stock market, has published the following data about dividends, future growth etc. of three companies ATL, UTA and Future growth rate expected in 5% 10% 10% Required rate of return/Cost of 15% 18% 20% Ascertain Market Price based on Gordan model
2. Q2 Answer the following (Any Two out of Three) 15 marks
   • A) Total budget available with the company is Cost (Rs in Lakhs) | Profitability Index Cash inflow for each projects Net present value for each of the projects Which project should be undertaken by the company in order to maximize the Net Present Value under Capital Rationing assuming that the each projects is
   • B) What are the different steps involve in Decision Tree analysis?
   • C) Given the following information, find out which project is more risky (use standard
   • Q.P. Code: 33129 State of the Probability of Actual Cash flows(Rs.)
3. Q3 Answer the following (Any Two out of Three) 15 marks
   • A) ACE company Itd is studying the possible acquisition of PACE company ltd by way of merger. The following information is available Number of equity shares 40,000 10,000 goes through exchange of equity shares and exchange ratio is based on the current market price, what will be new EPS for ACE Company Ltd. IfPACE Company Itd want to ensure that the earning available to its equity shareholder will not be diminished by the merger, what should be the exchange ratio in that case?
   • B) From the following date pertaining to XYZ Itd for the year ended 31*t March 2016, you are required to. calculate Economic Value Added? Cost of Equity 18% Cost of Debt (Pretax) 15%
   • C) What is corporate governance? Explain the importance of corporate governance?
4. Q4 Answer the following (Any Two out of Three) 15 marks
   • A) The following information is presented by Data and Sons Ltd. for the year 2017-18 company maintains one month’s stock of Raw Materials company extends two months credit to the customers
   • Q.P. Code: 33129 The company maintains two month’s stock of finished goods The processing period is One months The company is allowed one month’s credit by suppliers Wages and Overheads are paid one month in arrears The cash and bank balance is expected to be Rs. 8,125 There is regular purchase, production and sales cycle During production process, wages and overheads accrue evenly Debtors are to be calculated on sale price basis You are required to: Prepare the statement showing estimate of working capital Calculate MPBF as per the first and second method of lending recommended by Tandon
   • B) What are the objectives of nationalization of Banks in India?
   • C) The following information is available from the books of X Bank Ltd as on March Rebate on bills discounted Rs.2,21,600 Details of bills discounted: Calculate the rebate on bills discounted as on 31-03-2010 and also pass journal entries
5. Q5 Answer the following Standard project is considering accepting one out of two mutually exclusive projects A and B The cash flow and probabilities are as follows Compute the expected net present value for both the projects the standard deviation for both the projects Compute the Co-efficient of Variation for both the projects Which project do you consider more risky and why? 15 marks

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