Download GTU (Gujarat Technological University) MBA (Master of Business Administration) 2018 Winter 3rs Sem 3539262 Entrepreneurial Finance Ef Previous Question Paper
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER 3 ? EXAMINATION ? WINTER 2018
Subject Code:3539262 Date: 10/12/2018
Subject Name: Entrepreneurial Finance (EF)
Time: 10:30 AM TO 01:30 PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q.1 Explain the following terms.
1. Seed capital
2. Angle Finance
3. NBCR
4. The Venture Capital Assistance Scheme
5. NPV
6. WACC
7. Credit Guarantee Scheme
14
Q.2 (a) ?Proper Financial Planning is very crucial for the success of start up? do
you agree? Justify your answer.
7
(b) Explain in detail Types of Financing in various Stages of Start ups. 7
OR
(b) What is Private Equity? Is there any difference between VC and PE? If
yes highlight the differences.
7
Q.3 (a) The financial ratios of your firm are as follows.
Current ratio = 1.33, Acid-test ratio = 0.80,
Current liabilities=40,000, Inventory turnover ratio =6
What is the sales of the firm?
7
(b) What is risk? Explain various types of macro and micro level risk
associated with business.
7
OR
Q.3 (a) What do you mean by ratio analysis? What are the advantages of such
analysis? Also point out the limitations of ratio analysis.
7
(b) What is Venture capital Fund? State its advantages and disadvantages. 7
Q.4 (a) Write a detailed note on ?Government Schemes for Financing the
startups.?
7
(b) What are the various sources to fund short term or working capital
requirement of a start up?
7
OR
Q.4 (a) Write a note on funding especially available to women entrepreneur for
setting up the startup and working capital requirement from Indian
Government as a part of women empowerment movement.
7
(b) Prepare proforma of Projected cost sheet and Balance sheet 7
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Page 1 of 2
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER 3 ? EXAMINATION ? WINTER 2018
Subject Code:3539262 Date: 10/12/2018
Subject Name: Entrepreneurial Finance (EF)
Time: 10:30 AM TO 01:30 PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q.1 Explain the following terms.
1. Seed capital
2. Angle Finance
3. NBCR
4. The Venture Capital Assistance Scheme
5. NPV
6. WACC
7. Credit Guarantee Scheme
14
Q.2 (a) ?Proper Financial Planning is very crucial for the success of start up? do
you agree? Justify your answer.
7
(b) Explain in detail Types of Financing in various Stages of Start ups. 7
OR
(b) What is Private Equity? Is there any difference between VC and PE? If
yes highlight the differences.
7
Q.3 (a) The financial ratios of your firm are as follows.
Current ratio = 1.33, Acid-test ratio = 0.80,
Current liabilities=40,000, Inventory turnover ratio =6
What is the sales of the firm?
7
(b) What is risk? Explain various types of macro and micro level risk
associated with business.
7
OR
Q.3 (a) What do you mean by ratio analysis? What are the advantages of such
analysis? Also point out the limitations of ratio analysis.
7
(b) What is Venture capital Fund? State its advantages and disadvantages. 7
Q.4 (a) Write a detailed note on ?Government Schemes for Financing the
startups.?
7
(b) What are the various sources to fund short term or working capital
requirement of a start up?
7
OR
Q.4 (a) Write a note on funding especially available to women entrepreneur for
setting up the startup and working capital requirement from Indian
Government as a part of women empowerment movement.
7
(b) Prepare proforma of Projected cost sheet and Balance sheet 7
Page 2 of 2
Q.5 Your are is considering two projects to start your venture , M and N. Each of
which requires an initial outlay of Rs.240 million. The expected cash inflows
from these projects are:
Year Project M Project N
1 85 100
2 120 110
3 180 120
4 100 90
1. What is the payback period for each of the projects?
2. What is the discounted payback period for each of the projects if the
cost of capital is 15 percent?
3. If the two projects are mutually exclusive and the cost of capital is 12
percent, which project would you invest in?
4. If the cost of capital is 13 percent, what is the modified IRR of each
project?
14
OR
Q.5 Your firm ?Madhu Corporation? has the following book value capital
structure:
Equity capital (30 million shares, Rs.10 par) Rs.300 million
Preference capital, 15 percent (1,000,000 shares, Rs.100
par)
Rs. 100 million
Retained earnings Rs. 100 million
Debentures 11 percent (2,500,000 debentures, Rs.100
par)
Rs .250 million
Term loans, 13 percent Rs. 300 million
Total Rs.1050 million
The next expected dividend per share is Rs.4.00. The dividend per share is
expected to grow at the rate of 15 percent. The market price per share is Rs.80.
Preference stock, redeemable after 6 years, is currently selling for Rs.110 per
share. Debentures, redeemable after 6 years, are selling for Rs.102 per
debenture. The tax rate for the company is 35 percent.
Calculate the average cost of capital of your business using
1. Book value proportions, and
2. Market value proportions
14
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This post was last modified on 19 February 2020