2008000403050002 EXAMINATION MARCH 2024 BACHELOR OF BUSINESS ADMINISTRATION (THIRD SEMESTER) FINANCIAL MANAGEMENT [Time: Three Hours] [Max. Marks: 70] Instrictio Seat No: ! 1. Fill ap strictly the following details om-your answer book - - ‘a, Name of the Exainination : BACHELOR OF BUSINESS t ADMINISTRATION (THIRDSEMESTER) t | b. Name ofithe/Subject : FINANCIAL MANAGEMENT c. Subjeot Code No : 2008090403050002 2. Sketch neaf‘and labelled diagtain wherever necesaty. 3. Figures o.the right indicaté full marks of the question. 4. All questions are compulSOFY. ‘Student's Signature Q.1 Answerin Brief. (Any 7) 14 1Differentiate between Traditional and Modern phase\of Financial Management. 2. List out dties of Treasurer, 3. What.is\Commercial Paper? 4, What is accept - reject criteria for Profitability Index niethod of Capital Budgeting? 5.’ What is "float'in cash Management? 6. What docyoit mean by Right Issue? 7. DefiheCapital Budgeting. 8, What is Net Working Capital? 9. VEnlist sources‘0f short-term finanite. 2008000403050002 [1 of 3] X230Y91EA2FX230Y91EA2P. ’30Y 91 EA2FX230Y91EA2F10:Suppose Mr. M has invested Rs, 1,000 in a bank, whose maturity period is 20 years. The investment carries an interest rate of 14% compounded annually, What is the amount that he will receive back at the endof 20th year? Q2° a) Explain how wealth maximization goal is superior than profit 7 maximization goal of Financial Management. b) “What is Equity Share? Explain features of Equity Share 7 (OR) a) Explain Fuinétions of Finance, 7 b) Explain metits and demerits of preference to Company. 7 Q3 a) RAL Company is considering investment'proposal to install new 14 machinery at a cost oF Rs. 40,000 with the installation, charges of Rs. 10,000. The life of machinery is 5 years, without salvage value. The ‘company is considering taxation rate at 55% and straight line method is used for depréciation. ‘Year | Profit Before Depreciation & Tax | Discount rate @ 10% 1 10,000 0,909 z 11,000 026 3 14,000 0.751 7 15,000 06 3 25,000 0621 ‘Compute i) PBP ii) ARR iii) NPWat 10% discount rate. (OR) a) Explain Average Rafe)of Return methot of evaluating investment 7 proposal with merits and demerits b) Explain Capital Budgeting Process) 7 2008000403050002 [2of 3) X230Y91FA2FX230Y91 EA2FX230Y91EA2FX230Y91EA2FQ4 While preparing a project report on behalf of a client you have collected the 14 following facts. Estimate the net working capital requiréd for that project, Add 10% to your computed figure to allow contingencies: Particulars ‘Amount Per Unit (Rs.) Estimated cost per unit of production: Raw Material 80 Direct Labour 30 Overhead (exclusive of depreciation, Rs. 10 per unit) 60 Total cash cost 170 ‘Additional Information: - Selling price Rs, 200 per unit - Levelof activity 1,04,000 units of produetion per annum, ~ Raww\snaterials in stock average 4 weeks, - Work in progress.(assume 50% completion stage in réspect of conversion Costs and 100% completion in respect of materials), average 2 weeks: +~Finished goods in’stock, average'4)weeks. +” Credit allowed by suppliers, average 4 weeks. ~ Credit allowed to debtors, average 8 weeks - Lag in payment of wages, average 1.5 weeks. - Cash atbank is expected to be, Rs. 25,000: You may assume that production is carried orf evenly throughouitthie year (52 weeks) and wages and overheads accrue similarly. All sales aré on credit basis only. (OR) a) Explain Ally 2 methods forMonitoring Recéiyables. b) Explain factors affecting working capital. ax QS Attemptany TWO. (2 x7) 14 Managing Cash‘iriflow techniques of cash management. Evolution of Financial Manageffient. Costs associated with Receivables Management Brief idedabout Right Shares Rew 2008000403050002 [3 0f3) X230Y91EA2EX230Y91EA2FX290Y91EA2FX230Y91 EA2F