Download RGUHS BHA 2017 May 5th Sem 1320 Financial Management Question Paper

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Rajiv Gandhi University of Health Sciences, Karnataka

V semester Bachelors in Hospital Administration Degree Examination — May 2017

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Time: Three Hours Max. Marks: 80 Marks

Financial Management Q.P. CODE: 1320

(QP contains two pages)

Your answers should be specific to the questions asked.

Draw neat, labeled diagrams wherever necessary

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LONG ESSAYS (Answer any Two) 2 x 10 = 20 Marks

1. Explain Inventory and Accounts Receivable Management.
2. Explain short-term and long-term sources of Finance.
3. Kwality limited is capitalized with Rs.10,00,000 divided into 1,00,000 Equity Shares of Rs.10. The management desire to raise another Rs.10,00,000 to finance a major expansion programme. There are four possible financial plans - the company is in 50% tax bracket.
   1. All Equity Shares
   2. Rs. 5 Lakhs in Equity and the balance in Debentures carrying 12% Interest

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   3. All Debentures carrying 10% Interest
   4. Rs. 5 Lakhs in Equity and Rs.5 Lakhs in Preference Shares carrying 10% Dividend
   The existing EBIT amounts to Rs.2,00,000 p.a. Calculate EPS in all the above four plans.

SHORT ESSAYS (Answer any Eight) 8 x 5 = 40 Marks

4. Explain Profit Maximization.

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5. Explain factors influencing Capital Structure.
6. Explain different types of Leverage.
7. Explain Cash Management.
8. Explain approaches to Finance.
9. Explain Capital Market and Money Market.

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10. The Prosperous Company Ltd. is paying 20% of their earnings as Dividend every year. The annual profits for the last 5 years are Rs.1,00,000 and the number of Equity Shares outstanding is 10,000. The earnings of the company recorded an annual growth of 5%. The market price of share is Rs.100. Calculate cost of Equity Share Capital.
11. From the following particulars relating to a project, calculate IRR. The cost of the project is Rs.50,000; the life of the project is 5 years and following are the expected cash inflows of the project.
    Years 1 2 3 4 5
    Cash inflows 20,000 15,000 10,000 15,000 8,000
    Present Value Factors at 10% and 15%
    

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    Years 1 2 3 4 5
    PVF at 10% 0.909 0.826 0.751 0.683 0.621
    PVF at 15% 0.870 0.756 0.658 0.572 0.497
12. The following information is available in respect of a product.
    Units sold - 30,000
    

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    Units sale price - Rs.10
    Fixed cost - Rs.40,000
    Variable cost per unit - Rs.6
    Tax rate - 50%
    10% debt capital of Rs.1,00,000
    

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    Calculate Operating Leverage, Financial Leverage and Combined Leverage.
13. 10 year, 8% Debentures of Rs.100 face value, redeemable at 5% premium, sold at par, 2% flotation cost. Calculate Cost of Debt, the company is in 50% tax bracket.

SHORT ANSWERS (Answer any ten) 10 x 2 = 20 Marks

14. Define Capital Structure.
15. What is meant by Inventory?

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16. Define Financial Management.
17. What is meant by Funds Flow Statement?
18. What is meant by Financial Leverage?
19. What is meant by Primary Market?
20. What is Scrip Dividend?

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21. What is meant by Contribution?
22. What is meant by permanent and temporary Working Capital?
23. How do you calculate P/V ratio?
24. What is meant by Wealth Maximization?
25. What is meant by Financial Market?

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