Download RGUHS (Rajiv Gandhi University of Health Sciences) BHA (Bachelors in Hospital Administration) 2017 May 5th Sem 1320 Financial Management Previous Question Paper

Rajiv Gandhi University of Health Sciences, Karnataka
V semester Bachelors in Hospital Administration Degree Examination ? May 2017
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
LONG ESSAYS (Answer any Two)
2 x 10 = 20 Marks
1.
Explain Inventory and Accounts Recievable 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.
a) All Equity Shares
b) Rs. 5 Lakhs in Equity and the balance in Debentures carrying 12% Interest
c) All Debentures carrying 10% Interest
d) 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.
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.
10.
The Prosperous Company Ltd. is 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%
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
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
Calculate Operating Leverage, Financial Leverage and Combined Leverage.
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Rajiv Gandhi University of Health Sciences, Karnataka
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?
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?
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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