Master of Commerce (M.Com.) MCom Banking & Finance SEM II CORPORATE FINANCE Question Paper - Mumbai University | munotes

Questions asked in this paper

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• 2) Figures to the right indicate full marks

1. Q3 suitable assumptions wherever required and state them
2. Q4 Use of simple calculator is allowed
3. Q1 Anjali Ltd. has equity share capital of divided into share of 100 each. It to raise further for expansion programme The company plans the following financing alternatives for additional funds required : Tssue of 8% Preference You are required to suggest the best financing alternative giving your comments, assuming that estimate EBIT after expansion and corporate tax rate is 30% 15 marks
4. Q1 From the following information you are required to calculate : Total sales Cash sales 25% of credit sales; Cash purchases working capital closing inventory is more than opening inventory Calculate Operating Leverage, Financial Leverage and Combined Leverage from the (15) following data under situation I and Situation II taking into account Financial Plan A and Financial Plan B under both the situations : e Actual production and sales = 50% of installed capacity e Variable cost = 50% of selling price per unit 15 marks
5. Q2 a) involves cash inflows as given below : If the rate of interest is 15%. Find out present value of cash inflows. (Consider upto two 8 marks
   • b) RSK Ltd. obtained funds from the following sources. The specific cost are also given You are required to calculate weighted average. Cost of capital, assume corporate tax 7
6. Q3 Following are the details regarding three companies : Calculate value of equity share of each company as per Walter’s Model when the dividend payout ratio is : a) 20%, b) 60%, c) 100% From the following information of AB Ltd. (15) You are required to calculate : 15 marks
   • a) Cost of equity Cost of debt (after tax)
   • c) Weighted average cost of capital Rate of Tax = 30% The company wants to raise additional capital of 10,00,000 including debts of The cost of debt (before tax) is 10% upto and 15% beyond that
7. Q4 a) State whether the following statement are True or False : 8 marks
8. Q1 Strength of an organization depends on its financial discipline
9. Q4 Debt collection period show the period taken by debtors to pay
10. Q5 of retained earing is separately calculated
11. Q6 Trading on equity is used to increase earning per share,
12. Q7 While issuing stock dividend SEBI guidelines should be compiled with
13. Q8 The capital structure need not to flexible
    • b) Match the columns : 7
14. Q4 Write short notes on (Any Three) : 15 marks
    • a) Marginal Cost.of Capital
    • c) Forms of Investments
    • d) Importance of Financial Management
    • e) Return on Capital Employed

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