Bharathidasan University 2006 B.B.A FINANCIAL MANAGEMANT - Question Paper
SMo. 5306 BBL
(Pot candidataa adauttod from 1996 onwards)
B.B A DEGREE EXAMINATION. APRIL 2006 Part III Buiumm AdamistntUoc Mi)or FINANCIAL MANAGBMENT Ttao: Thrao houn Mmmum: 100 mark*
SECTION A (10x2-20)
Ancwvr ALL quMtioaa.
1. Explain th* nature of fUuac* function.
2- What ar* tha goal* of financial management'*
5. Dafina marginal coat of capital.
4. What do you mean by lewage7
6. What do you moan by trading on aquity?
& What do you undarvtand by a balanead capital tmctura of a fins?
7. Deftna pay bade panod
8. What do you understand by capital budgeting daemon*
9. What to forecasting*
10. Write the menu of IRR method?
SECTION B-(5x6. JO)
Answer the followinf question*.
11. (a) Write a comprehensive note oc the objectives of a Arm from financial point of view.
Of
(b) Examine the rote of financial management in
12. (a) Explain the coocept of coat of capita]. What is its importance?
Or
<b) How would you measure the cost of eapital in making investment decisions?
13. (a) Explain the importance of optimum capital structure of a firm Otecnbe its characteristics.
Or
(b> Define capital gearing When a company be said to be highly geared or low geared'
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14. (a) What do you mean by Economics of capital Budgeting? Explain briefly.
Or
(b) A concern is considering two projects X and Y. Following are the particulars in respect of them:
|
Project X |
Project Y | |
|
Coat (Rs) |
1.40.000 |
1.40.000 |
|
Economic Life (in years) |
10 |
10 |
|
Estimated Scrap (in Rs.) |
10.000 |
14.000 |
|
Annual savings |
25.000 |
20.000 |
Ignoring income-tax, recommend the beet of these projects using (I) pay-back penod (ii) post pay-back profit and (iii) Index of post pay-back profit.
15. <a) Define Financial Planning and discuss its various aspects.
Or
(b) What considerations would you keep in mind while drafting a financial plan for industrial concerns?
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SECTION C-(5x10-GO)
Axurwer ALL questions.
16. (a) How will you organise your department in the capacity of financial manager?
Or
(b) Explain the concept of profit maximisation and wealth maximisation.
17. (a) What is meant by weighted average coat of capital? What is the utility of computing weighted average coat of capital?
Or
(b) The Xavier corporation, a dynamic growth firm which pays no dividends, anticipate* a long ran level of future earning of Re. 7 per share. The current price of Xavier's shares is Rs. 55.46 ; floatation costs for the sales of equity sharee would average about 10% of the price of the shares What is the cost of new equity capital to Xavier?
18. (a) Explain the advantages and limitations of trading on equity.
Or
(b) Describe the necessity of change* in capital structure of a firm
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19. (a) What ia peaal value method? How m profitability of various capital projects evaluated under this method?
Or
fb) Pay off Ltd is producing activities mostly by manual Labour and is ooondenng to replace it by a new machine. Prepare a statement of profitability showing the payback pened from the following information :
Machine A Machine B Estimated life of machine 4 years 6 yean
Cost of the machine
Estimated savings in scrap
Estimated savings in direct wages
Additional cost of
Additional cost of supervision Ignore Taxation
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20. (a) giplain the tool* of fimwui forecaetms-Or
(b) Explftw the (melon influeaanc fioancud planning
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| Earning: Approval pending. |
