FirstRanker Logo

FirstRanker.com - FirstRanker's Choice is a hub of Question Papers & Study Materials for B-Tech, B.E, M-Tech, MCA, M.Sc, MBBS, BDS, MBA, B.Sc, Degree, B.Sc Nursing, B-Pharmacy, D-Pharmacy, MD, Medical, Dental, Engineering students. All services of FirstRanker.com are FREE

📱

Get the MBBS Question Bank Android App

Access previous years' papers, solved question papers, notes, and more on the go!

Install From Play Store

Download JNTUH MBA 2018 May 2nd Semester Financial Management Question Paper

Download JNTUH (Jawaharlal Nehru Technological University Hyderabad) MBA (Master of Business Administration) R16 2018 May Second Semester (2nd Sem) Financial Management Question Paper.

This post was last modified on 04 December 2019

This download link is referred from the post: JNTUH MBA 2nd Sem Last 10 Year Question Papers (2010-2020) All Regulation - (JNTU Hyderabad)


Hall Ticket No

Question Paper Code: CMB008

MBA II Semester End Examinations (Regular) - May/June, 2018

--- Content provided by FirstRanker.com ---

Regulation: R16

FINANCIAL MANAGEMENT

(MBA)

Time: 3 Hours Max Marks: 70

Answer ONE Question from each Unit

All Questions Carry Equal Marks

--- Content provided by FirstRanker.com ---

All parts of the question must be answered in one place only


UNIT I

  1. (a) Critically evaluate the goals of maximization of profit and maximization of return on equity. [7M]
    (b) "Maximization of wealth provides the more useful and meaningful guidance than the maximization of profits for the evaluation of financial action or decision”. Do you agree? Explain. [7M]
  2. (a) Explain the mechanism of calculating present value of cash flows giving suitable examples. [7M]
    (b) Calculate the present value of the following cash stream data shown in Table 1 if the discount rate is 14 per cent. [7M]

    Table 1

    --- Content provided by FirstRanker.com ---

    Year 0 1 2 3 4
    Cash flow 5000 6000 8000 9000 8000

UNIT II

  1. (a) Discuss about traditional methods and its merits and demerits. [7M]
    (b) From the Table 2 capital structure of a company, calculate the overall cost of capital, using book value weights and market value weights. [7M]

    Table 2

    Source Cost of Capital -% Book Value Market Value
    Eq. Share Capital(Rs.10 shares) 14 45000 90000
    Retained earnings 13 15000 30000
    Preference share capital 10 10000 10000
  2. (a) Discuss the procedure for determining the weighted marginal cost of capital. [7M]

    --- Content provided by FirstRanker.com ---

    (b) The initial cash outlay of a project is Rs.50,000 and it generates cash inflows of Rs.20000, Rs.15000, Rs.25000 and 10000 in four years. Using present value index method, appraise profitability of the proposed investment assuming 10% rate of discount. [7M]

UNIT III

  1. (a) Examine the relationship between NI and NOI approach. [7M]
    (b) Babu Trading Company has sales of Rs. 1 Lakh. The variable costs are 40% of the sales while the fixed operating costs amount of Rs.30000. The amount of interest on long term debt is Rs.10000. You are required to calculate the composite leverage and illustrate its impact if sales increase by 5%. [7M]
  2. (a) Define financial leverage. Explain its importance. [7M]
    (b) Explain the concept of MM theory of capital structure. [7M]
  3. --- Content provided by FirstRanker.com ---


UNIT IV

  1. (a) Define Dividend. Explain its determining factor under various Dividend theories. [7M]
    (b) Define working capital. Discuss the determinants of working capital [7M]
  2. (a) Discuss the approaches for financing current assets. [7M]
    (b) Discuss the relevant approach on a dividend decision given by James Walter and its limitations. [7M]

UNIT V

  1. (a) Describe briefly the components of working capital. [7M]

    --- Content provided by FirstRanker.com ---

    (b) XYZ company plans to achieve annual sales of 1,00,000 units for the year 2005. The following is the cost structure of the company as per the previous figures. [7M]

    Materials 50%

    Labour 20%

    Overheads 10%

    The following further particulars are available from the records of the company.

    1. Raw materials are expected to remain in stores for an average period of one month before issue to production.
    2. --- Content provided by FirstRanker.com ---

    3. Finished goods are to stay in the warehouse for two months on an average before being sold and sent to customers.
    4. Each unit of production will be in process for one month on the average.
    5. The credit allowed by the suppliers of raw material is one month from the date of delivery of materials.
    6. Debtors are allowed credit for two months from the date of sale of goods
    7. Selling price per unit is Rs.9 per unit
    8. --- Content provided by FirstRanker.com ---

    9. Production and sales follow a consistent pattern and there are no wide fluctuations.

    Determine the quantum of working capital required to finance the activity level of 1, 00,000 unit for the year 2005.

  2. (a) Define cash budget. Explain its importance in an organization. [7M]
    (b) Economic Enterprises require 95000 units of certain items annually. The cost per unit is Rs.3. The cost per purchase order is Rs.300 and the inventory carrying cost is Rs.6 per unit per year. [7M]
    1. What is EOQ?
    2. --- Content provided by FirstRanker.com ---

    3. What should the firm do if the suppliers offer discounts as shown in Table 3:

    Table 3

    Order quantity Discount
    4500-5999 3%
    6000 and above 4%

FirstRanker.com


--- Content provided by FirstRanker.com ---


This download link is referred from the post: JNTUH MBA 2nd Sem Last 10 Year Question Papers (2010-2020) All Regulation - (JNTU Hyderabad)