5 SEM TDC FIMT (CBCS) C
512
2023 (November)
COMMERCE (Core)
Paper: C-512 (Financial
Management)
Financial Management Question Paper 2022
Full Marks: 80
Pass Marks: 32
Time: 3 hours
The figures in the margin indicate full marks for the questions
1. (a) Fill in the blanks: 1x4=4
(1) Financial function is
the most important of all _______ functions.
(2) _______ working
capital helps in maintaining solvency of the business by providing
uninterrupted flow of production.
(3) Cost of capital is the
_______ rate of return expected by an investor.
(4) The value of the firm
can be maximized, if the shareholders’ wealth is _______.
(b) Write True or False: 1x4=4
(1) ‘Finance’ has been
rightly termed as universal lubricant which keeps the enterprise dynamic.
(2) Working capital is also
known as revolving or circulating capital.
(3) Operating Leverage ´
Composite Leverage = Financial Leverage.
(4) Payment of dividend at
the usual rate is termed as regular dividend.
2. Write short notes on any four of the
following: 4x4=16
(a) Finance function.
(b) Types of working
capital.
(c) Cost of capital.
(d) Financial leverage.
(e) Risk-return tradeoff.
[Message to CopyCat Website: Thet*****re*not**.in, You are Fully uploading my Solved Papers on your website even after telephonic converstion. Now, i feel very sad and shame because during your studies my website helps all of you a lot but i was not able to taught all of you some ethics. Also your parents failed to do so. I also feel very sad for expecting some genuine and pure work form such CopyCats and boneless people.]
3. (a) “Profit maximization is not the
adequate criterion to judge the efficiency of a firm.” Explain the statement.
What should be the right criterion and why? 6+8=14
Or
(b) Critically analyze the
function of a financial manager in a large-scale industrial establishment. What
are the responsibilities of a financial manager in a modern business
organization? 8+6=14
4. (a) What are the benefits of adequate
working capital? What are the repercussions if a firm has (i) redundant working
capital and (ii) inadequate working capital? 4+5+5=14
Or
(b) From the following
information, you are required to estimate the Net Working Capital: 14
|
Particulars |
Cost per Unit (Rs.) |
|
Raw materials Direct labour Overhead (excluding
depreciation) |
400 150 300 |
|
Total cost |
850 |
Additional information:
Selling price – Rs. 1,000
per unit
Output – 52000 units
Raw materials in stock –
average 4 weeks
Work-in progress (Assume
50% completion stage with full material consumption) – average 2 weeks.
Finished goods in stock –
average 4 weeks
Credit allowed by
suppliers – average 4 weeks
Credit allowed to debtors
– average 4 weeks
Cash at bank expected to be
Rs. 50,000
Assume that production is
sustained at an even pace during 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) A company is
considering an investment proposal to purchase a machine costing Rs. 2,50,000.
The machine has a life expectancy of 5 years and no salvage value. The
company’s tax rate is 40%. The firm uses straight-line method for providing
depreciation. The estimated cash flows before tax (CFBT) and after depreciation
from the machine are as follows:
|
Year |
CFBT (Rs.) |
|
1 2 3 4 5 |
60,000 70,000 90,000 1,00,000 1,50,000 |
Calculate:-
(1) Payback period.
(2) Average rate of
return.
(3) Net present value.
(4) Profitability index at
10% discount rate.
You may use the following
table: 3+4+4+3=14
|
Year: |
1 |
2 |
3 |
4 |
5 |
|
P.V. Factor at 10% |
0.909 |
0.826 |
0.751 |
0.683 |
0.621 |
6. (a) Explain the various factors which
influence the dividend decision of a firm. 14
Or
(b) What do you mean by
‘Ploughing Back of Profit’? What are the purposes of ploughing back? Discuss
the various factors that influence the ploughing back of profits. 3+3+8=14
***
Post a Comment
Kindly give your valuable feedback to improve this website.