Download JNTUA (JNTU Anantapur) MBA (Master of Business Administration) 2019 June Supplementary 2nd Sem 17E00204 Financial Management Previous Question Paper
Code: 17E00204
MBA & MBA (Finance) II Semester Regular & Supplementary Examinations June 2019
FINANCIAL MANAGEMENT
(For students admitted in 2017 & 2018 only)
Time: 3 hours Max. Marks: 60
All questions carry equal marks
*****
SECTION ? A
(Answer the following: 05 X 10 = 50 Marks)
1 Discuss the nature and scope of financial management.
OR
2 Explain the scope and objectives of financial management.
3 Describe the investment decision process in detail.
OR
4 A company is considering two mutually exclusive projects. Both require an initial cash outlay of
Rs.10,000 each and has a life of 5 years. The company?s required rate of return is 10% and pays
a tax of 50%. The project will be depreciated on a straight line basis. The before tax cash flows
expected to be generated by the project are as follows:
Year
Before tax cash flows
1 2 3 4 5
Project A 4,000 4,000 4,000 4,000 4,000
Project B 5,000 5,000 2,000 5,000 5,000
Calculate for each project:
(i) Payback period.
(ii) Profitability index.
Which project should be accepted and why?
5 Discuss any two sources of long term finance with their relative merits and demerits.
OR
6 Explain the various factors that influence the dividend decision of a firm.
7 Discuss the factors that affect the size of the receivables.
OR
8 Define working capital. Discuss in detail objectives of working capital. Also discuss in detail
operating cycle approach to working capital and cash management.
9 Identify and discuss the factors which are considered necessary in determining a firm?s value
before taking a merger decision.
OR
10 Who can be a ?Issue manager? as per the SEBI regulations? Briefly describe the various
activities undertaken by an issue manager while managing a public issue.
Contd. in page 2
Page 1 of 2
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Code: 17E00204
MBA & MBA (Finance) II Semester Regular & Supplementary Examinations June 2019
FINANCIAL MANAGEMENT
(For students admitted in 2017 & 2018 only)
Time: 3 hours Max. Marks: 60
All questions carry equal marks
*****
SECTION ? A
(Answer the following: 05 X 10 = 50 Marks)
1 Discuss the nature and scope of financial management.
OR
2 Explain the scope and objectives of financial management.
3 Describe the investment decision process in detail.
OR
4 A company is considering two mutually exclusive projects. Both require an initial cash outlay of
Rs.10,000 each and has a life of 5 years. The company?s required rate of return is 10% and pays
a tax of 50%. The project will be depreciated on a straight line basis. The before tax cash flows
expected to be generated by the project are as follows:
Year
Before tax cash flows
1 2 3 4 5
Project A 4,000 4,000 4,000 4,000 4,000
Project B 5,000 5,000 2,000 5,000 5,000
Calculate for each project:
(i) Payback period.
(ii) Profitability index.
Which project should be accepted and why?
5 Discuss any two sources of long term finance with their relative merits and demerits.
OR
6 Explain the various factors that influence the dividend decision of a firm.
7 Discuss the factors that affect the size of the receivables.
OR
8 Define working capital. Discuss in detail objectives of working capital. Also discuss in detail
operating cycle approach to working capital and cash management.
9 Identify and discuss the factors which are considered necessary in determining a firm?s value
before taking a merger decision.
OR
10 Who can be a ?Issue manager? as per the SEBI regulations? Briefly describe the various
activities undertaken by an issue manager while managing a public issue.
Contd. in page 2
Page 1 of 2
Code: 17E00204
SECTION ? B
(Compulsory question, 01 X 10 = 10 Marks)
11 Case Study:
X company Ltd is considering three different plans to finance its total project cost of Rs.100
lakhs. They are
1. Plan A : Equity (Rs.100 per share) ? 50 lakhs
Debt (8% Debentures) ? 50 lakhs
2. Plan B : Equity (Rs.100 per share) ? 34 lakhs
Debt (8% Debentures) ? 66 lakhs
3. Plan C : Equity (Rs.100 per share) ? 25 lakhs
Debt (8% Debentures) ? 75 lakhs
Sales for the first three years of operations are estimated at Rs.100 lakhs, Rs.125 lakhs and
Rs.150 lakhs and a 10% profit before interest and taxes is forecasted to be achieved. Corporate
taxation to be taken at 50%. Compute earnings per share in each of the alternative plans of
financing for the three years.
*****
Page 2 of 2
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This post was last modified on 27 July 2020