Bba 4 Sem Financial Management 77425 Dec 2022

Download as pdf or txt
Download as pdf or txt
You are on page 1of 3

Roll No. Total No.

of Pages: 03

Total No. of Questions: 09

BBA (Sem. – 4)
FINANCIAL MANAGEMENT
Subject Code: BBA-403-18
M Code: 77425
Date of Examination: 17-12-2022
Time: 3 Hrs. Max. Marks: 60
INSTRUCTIONS TO CANDIDATES:
1. SECTION-A is COMPULSORY consisting of TEN questions carrying TWO marks each.
2. SECTIONS-B consists of FOUR Sub-sections : UNITS-I, II, III & IV. Each Sub-section
contains TWO questions each, carrying TEN marks each.
3. Students have to attempt any ONE question from each Sub-section.

SECTION-A

1. Write short notes on:

a) Liquidity decision

b) Annuity

c) Retained earnings

d) Capital structure

e) Operating leverage

f) Capital budgeting

g) Payback period

h) Treasury bills

i) Working capital cycle

j) Weighted average cost of capital

M-77425 S-716
SECTION-B

UNIT-I

2. Discuss the meaning, nature and scope of financial management.

3. "A rational human being has a time preference for money." What are the reasons for such
preference and illustrate with suitable examples?

UNIT-II

4. What do you understand by the term 'Leverage'? How does it affect the profits of a firm?
Compare the nature of financial leverage with operating leverage.

5. The following is the capital structure of XYZ ltd.

Source Amount Rs. Interest rate / Dividend

Equity share capital 25,000 11%

Preference share capital 20,000 10%

Retained earnings 10.000 8%

Debentures 20,000 10%

Tax rate is 50%. Calculate the overall cost of capital.

UNIT-III
6. A company is considering an investment proposal that has the following cash flows:

Projects YEAR PV PV
A −10,000 10,000 (10%) (30%)
B −10,000 17,500 7,500 1 . 909 . 769
C −10,000 2,000 4,000 12,000 2 . 826 . 592
D −10,000 10,000 3,000 13,000 3 . 751 . 455

Rank the projects according to:


a) ARR method
b) NPV method

M-77425 S-716
7. Discuss the following two methods of capital budgeting:
a) Profitability Index
b) Accounting rate of return.

UNIT-IV

8. What is the significance of working capital? What are the different approaches to working
capital management?
9. Critically evaluate the theories of relevance of dividends.

NOTE : Disclosure of Identity by writing Mobile No. or Marking of passing request on


any paper of Answer Sheet will lead to UMC against the Student.

M-77425 S-716

You might also like