Dibrugarh University B.Com Question Papers 2023
1 SEM FYUGP MIN
COMMERCE (Minor)
Paper: MINFIN1
(Financial Management - I)
Full Marks: 80
Pass Marks: 24
Time: 3 hours
1. (a) Fill in the blanks: 1x4=4
(1) ______ is the life blood of business concern.
(2) Working capital is also known as ______ capital.
(3) Capital investment decisions are generally of ______ nature.
(4) The payment of dividend at the usual rate is termed as ______ dividend.
(b) Write True or False: 1x4=4
(1) Finance manager has to estimate, procure and utilize financial resources.
(2) Capital budgeting is the process of making long-term investment decisions in capital expenditure.
(3) Net working capital is the excess of current assets over current liabilities.
(4) Dividend policy of a firm affects both the long-term financing and shareholders’ wealth.
2. Write short notes on any four of the following: 4x4=16
(a) Wealth maximization.
(b) Payback period.
(c) Principles of working capital management.
(d) Cash dividend.
(e) Optimal capital structure.
3. (a) “Maximization of profit is regarded as the proper objective of investment decisions, but it is not as exclusive as maximizing shareholders’ wealth.” Comment. 14
Or
(b) What is financial function? Critically analyze the functions of financial manager in a large-scale industrial establishment.
4. (a) Define working capital. Discuss the different factors that are to be considered while estimating the working capital requirement of a concern. 3+11=14
Or
(b) From the following information, you are required to estimate the Net Working Capital:
|
|
Cost per unit (Rs.) |
|
Raw materials Direct labour Overheads (excluding depreciation) |
400 150 300 |
|
Total cost |
850 |
Additional Information:
(1) Selling price = Rs. 1,000 per unit.
(2) Output = 52,000 units.
(3) Raw materials in stock = Average 4 weeks.
(4) Work-in-progress (assumed 50% completion stage with full material consumption) = Average 2 weeks.
(5) Finished goods in stock = Average 4 weeks.
(6) Credit allowed by suppliers = Average 4 weeks.
(7) Credit allowed to debtors = Average 8 weeks.
(8) Cash at bank is expected to be Rs. 50,000.
(9) 25% of purchases are made for cash.
Assume that production is sustained at an even pace during the 52 weeks of the year. All sales are on credit basis.
5. (a) “Capital budgeting is long-term planning for making and financing proposed capital outlay.” Explain. What are the limitations of capital budgeting? 6+8=14
Or
(b) What do you mean by investment decision? What are the various investment decision techniques? Point out the advantages and disadvantages of the following two methods of capital budgeting: 2+4+4+4=14
(1) Payback period.
(2) Net present value.
6. (a) Discuss the MM theory of dividend distribution. What are the criticisms of this theory of irrelevance? 14
Or
(b) (1) What is dividend? Discuss the various forms of dividend. 2+5=7
(2) What do you understand by a stable dividend policy? Why should it be followed? 2+5=7
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