Download PTU ( I.K.Gujral Punjab Technical University (IKGPTU)) The Bachelor of Business Administration (BBA) 2020 December 4th Sem 77425 Financial Management Previous Question Paper
Roll No.
Total No. of Pages : 03
Total No. of Questions : 18
BBA (2018 Ba tch) (Sem.?4)
FINANCIAL MANAGEMENT
Subject Code : BBA-403 -18
M.Code : 77425
Time : 3 Hrs. Max. Marks : 60
INST RUCT IONS T O CANDIDAT ES :
1 .
SECT ION-A is COMPULSORY cons is ting of TEN questions carrying TWO marks
each.
2 .
SECT ION-B cons ists of F OUR Sub-sec tions : Un its-I, II, III & IV.
3 .
Eac h Sub-section contains TWO questions each , carry in g T EN ma rks e ach .
4 .
Students have to atte mpt an y ONE ques tion from each Sub-section.
SECTION-A
Write short notes on :
Q1. Commercial bills
Q2. Time value of money
Q3. Cost of capital
Q4. Arbitrage
Q5. Financial leverage
Q6. Investment decisions
Q7. Profitability index
Q8. Permanent working capital
Q9. Bonus shares
Q10. Irrelevance of dividends
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SECTION-B
UNIT-I
Q11. Critically compare profit maximization and wealth maximization. Which one serves as a
better goal of financial management and why?
Q12. Which are the short term sources from where a business firm can raise money?
UNIT-II
Q13. What are the important determinants of capital structure? Discuss the MM Approach as
theory of capital structure.
Q14. The following information has been given in respect of a company :
Particulars
Rs.
1.
Equity share capital (dividend into shares of Rs. 10 each)
10,00,000
2.
Debentures (14%)
30,00,000
3.
Selling price per unit
50
4.
Variable cost per unit
30
5.
Fixed costs
12,00,000
The company is producing, at present. 1,00,000 units. Now, the management of the
company plans to increase output by 25%. The tax rate for the company is 40%.
On the basis of the above information, you are required to make out the following
calculations for the existing as well as the planned level of output.
a) Operating Leverage
b) Financial Leverage
c) Earnings per share
Analyse and interpret the results.
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UNIT-III
Q15. Why are investment decisions important in a firm? Which are the different non-discounted
cash flow techniques for investment decision making?
Q16. From the following information, calculate the net present value of the two project and
suggest which of the two projects should be accepted at a discount rate of the two :
Project X
Project Y
Initial Investment Rs. 20,000
Rs. 30,000
Estimated Life
5 Years
5 years
Scrap Value
Rs. 1,000
Rs. 2,000
The profits before depreciation and after taxation (cash flows) are as follows :
Year 1
Year 2
Year 3
Year 4
Year 5
Rs.
Rs.
Rs.
Rs.
Rs.
Project x
5,000
10,000
10,000
3,000
2,000
Project y
20,000
10,000
5,000
3,000
2,000
Note : The following are the present value factors @ 10% p.a.
Year
1
2
3
4
5
6
Factor
0.909
0.826
0.751
0.683
0.621
0.564
UNIT-IV
Q17. What do you mean by working capital and its different types? What factors affect the
working capital needs of a firm and how?
Q18. What are the different forms in which dividend can be offered to shareholders? What do
you mean by irrelevance of dividends?
NOTE : Disclosure of Identity by writing Mobile No. or Making of passing request on any
page of Answer Sheet will lead to UMC against the Student.
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This post was last modified on 15 February 2021