Download RGUHS (Rajiv Gandhi University of Health Sciences) BHA (Bachelors in Hospital Administration) 2016 May 5th Semester 1320 Financial Management Previous Question Paper

Rajiv Gandhi University of Health Sciences, Karnataka
V semester Bachelors in Hospital Administration Degree Examination ? May 2016
Time: Three Hours


Max. Marks: 80 Marks
Financial Management
Q.P. CODE: 1320
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.
Define working capital management. Explain factors influencing working capital management.
2.
Explain profit and wealth maximization.
3.
Modern company limited is considering the purchase of a machine, which cost Rs.50,000. The
machine has a life expectancy of 5 years and no salvage value. The tax rate is 35%. Assume the
company uses straight line method of depreciation. The estimated cash flow before depreciation
and tax (CFBDT) from the investments is as follows:
Year
1
2
3
4
5
CFBDT
10,000
10,692
12,769
13,462
20,385
Compute the following:
a. Payback period
b. Average rate of return
c. NPV at 10% discount rate
d. Profitability index at 10% discount rate
The PVF at 10% for Re.1 as follows:
Year
1
2
3
4
5
PVF at 10%
0.909
0.826
0.751
0.683
0.621
SHORT ESSAYS (Answer any Eight)
8 x 5 = 40 Marks
4.
Explain functions of finance.
5.
Explain different components of short term finance.
6.
Explain NPV.
7.
Explain different kinds of leverages.
8.
Explain inventory management.
9.
Explain break even point.
10. Amul limited issues 10 year 9% redeemable debentures for Rs.100 each at par of Rs.5,00,000
and incurs issue expensed at 2%. The company is in 40% tax bracket. Calculate the cost of debt
assuming that the debentures are redeemable.
a. At par
b. 5% discount and
c. 5% premium
11. From the following particulars, calculate the weighted average cost of capital.
Sources of Funds
Amount
Specific Cost of Capital
Equity share capital
6,00,000
15%
Retained earnings
3,00,000
15%
Preference share capital
2,00,000
10%
Debentures
2,00,000
12%
12. From the following particulars calculate breakeven point in terms of units and rupees.
Fixed expenses ? Rs.4,00,000
Variable cost per unit ? Rs.15
Selling price per unit ? Rs.20
13. The installed capacity of a factory is 800 units. The actual capacity is 500 units. Selling price per
unit is Rs.10 and variable cost per unit is Rs.6 per unit. Calculate the operating leverage in each

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Rajiv Gandhi University of Health Sciences, Karnataka
of the following situations.
a. When fixed cost are Rs.500
b. When fixed cost are Rs.1,100
c. When fixed cost are Rs.1,500
SHORT ANSWERS (Answer any ten)
10 x 2 = 20 Marks
14. What is financial management?
15. What is meant by capital structure?
16. What is meant by financial plan?
17. Define share.
18. What is meant by primary market?
19. What is operating cycle?
20. Name the motives for holding cash.
21. What is cash flow statement?
22. What is meant by scrip dividend?
23. What is meant by pay back period?
24. What is meant by weighted average cost of capital?
25. What is meant by retained earnings?
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