Download JNTU-Hyderabad MBA 2nd Sem R17 2019 May 742AC Financial Management Question Paper

Download JNTUH (Jawaharlal Nehru Technological University Hyderabad) MBA (Master of Business Administration) 2nd Semester (Second Semester) R17 2019 May 742AC Financial Management Previous Question Paper



Code No: 742AC
JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY HYDERABAD
MBA II Semester Examinations, April/May-2019
FINANCIAL MANAGEMENT
Time: 3hours Max.Marks:75

Note: This question paper contains two parts A and B.
Part A is compulsory which carries 25 marks. Answer all questions in Part A. Part B
consists of 5 Units. Answer any one full question from each unit. Each question carries
10 marks and may have a, b, c as sub questions.

PART - A 5 ? 5 Marks = 25

1. Write short notes on the following:
a) Risk-Return trade off [5]
b) Cost of Equity capital [5]
c) Financial Leverage [5]
d) Trade Credit [5]
e) Credit Policy [5]

PART - B 5 ? 10 Marks = 50

2. Why is Wealth Maximization goal thought to be a better operating goal than profit
maximization? [10]
OR
3. Write about:
a) Goals of finance function
b) Time value of money [5+5]

4. What is Cost of Capital? Explain the importance of cost of capital in capital budgeting
decisions. [10]
OR
5. A company is considering investing in a project that cost Rs.4,00,000. The estimated
salvage value is zero, tax rate is 55 percent. Depreciation is calculated based on straight
line method. The projected cash flows before tax (CFBT) are as follows:
Year 1 2 3 4 5
CFBT (Rs.) 1,00,000 1,20,000 1,50,000 1,70,000 2,50,000
Calculate:
a) Net Present value at 10 percent cost of capital
b) Internal Rate of Return
c) Pay Back Period [10]

6. Explain the factors determining the dividend policy of a company. [10]
OR
7. The sales of Hasini Ltd. are 20000 units at the rate of Rs. 20 each. The variable cost per
unit is Rs. 8 per unit. The fixed expenses are Rs. 50000. The company employs 10%
debentures of Rs. 500000 in its capital structure. You are required to calculate
a) Degree of operating leverage
b) Degree of Financial leverage
c) Degree of combined leverage [10]


R17

FirstRanker.com - FirstRanker's Choice


Code No: 742AC
JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY HYDERABAD
MBA II Semester Examinations, April/May-2019
FINANCIAL MANAGEMENT
Time: 3hours Max.Marks:75

Note: This question paper contains two parts A and B.
Part A is compulsory which carries 25 marks. Answer all questions in Part A. Part B
consists of 5 Units. Answer any one full question from each unit. Each question carries
10 marks and may have a, b, c as sub questions.

PART - A 5 ? 5 Marks = 25

1. Write short notes on the following:
a) Risk-Return trade off [5]
b) Cost of Equity capital [5]
c) Financial Leverage [5]
d) Trade Credit [5]
e) Credit Policy [5]

PART - B 5 ? 10 Marks = 50

2. Why is Wealth Maximization goal thought to be a better operating goal than profit
maximization? [10]
OR
3. Write about:
a) Goals of finance function
b) Time value of money [5+5]

4. What is Cost of Capital? Explain the importance of cost of capital in capital budgeting
decisions. [10]
OR
5. A company is considering investing in a project that cost Rs.4,00,000. The estimated
salvage value is zero, tax rate is 55 percent. Depreciation is calculated based on straight
line method. The projected cash flows before tax (CFBT) are as follows:
Year 1 2 3 4 5
CFBT (Rs.) 1,00,000 1,20,000 1,50,000 1,70,000 2,50,000
Calculate:
a) Net Present value at 10 percent cost of capital
b) Internal Rate of Return
c) Pay Back Period [10]

6. Explain the factors determining the dividend policy of a company. [10]
OR
7. The sales of Hasini Ltd. are 20000 units at the rate of Rs. 20 each. The variable cost per
unit is Rs. 8 per unit. The fixed expenses are Rs. 50000. The company employs 10%
debentures of Rs. 500000 in its capital structure. You are required to calculate
a) Degree of operating leverage
b) Degree of Financial leverage
c) Degree of combined leverage [10]


R17




8. What is Working Capital Management? What are the sources of Working Capital? [10]
OR
9. From the following information presented by a manufacturing company, prepare
statement of working capital requirement. Expected sales are 1,20,000 units at the rate of
Rs.100 per unit. The cost per unit in Rs. consists of:
Raw material 45
Labour 22
Overheads 13
Profit 20
Raw material in stock, on average one month
Material in process, on average one month
Finished goods in stock, on average one month
Credit allowed to debtors is one month
Credit allowed by creditors is one month
Lag in payment of wages is two weeks
One fourth of the output is sold for cash. Cash is hand is Rs.80,000. [10]

10. Prepare cash budget for the three months starting from March 2019.
Month Sales ( Rs.) Purchases ( Rs.) Wages ( Rs.)
January, 2019 3,20,000 2,60,000 40,000
February, 2019 3,34,000 2,52,000 42,000
March, 2019 2,92,000 3,46,000 38,000
April, 2019 3,66,000 4,06,000 34,000
May, 2019 2,22,000 4,28,600 30,000
a) 25 percent of the sales is on cash. 50 percent of the credit sales is realized in the
month following sales and the remaining 50 percent of the credit sales in the second
month following.
b) Creditors are paid in the month following the month of purchase.
c) Estimated cash at bank as on 1
st
March, 2019 is Rs.80, 000. [10]
OR
11. Discuss the techniques of cash management. [10]

--ooOoo--
















FirstRanker.com - FirstRanker's Choice

This post was last modified on 23 October 2020