Jaypee Institute of Information Technology (JIIT) 2008 B.E Test 1 : Financial Management - Question Paper

JAYPEE UNIVERSITY OF INFORMATION TECHNOLOGY WAKNAGHAT, SOLAN fH.P.)

TEST - I, FEBRUARY 2008     vyKV

B. Tech - IV SEMESTER, ALL BRANCHES    '

COURSE NAME: FINANCIAL MANAGEMENT    fX,V , TIME: I Hr

COURSE CODE: 07B41PD104

COURSE CREDIT: 3 (THREE)    *    MAX MARKS:20

Answer all questions. Marks of each question are given in the parenthesis shown agaiast the question._

1.    The equity share holder is considered as the residual owner of a corporation". Whal does this mean in terms of risk and return?    (3)

2.    The basic rationale for the objective of wealth maximisation is that it reflects the most efficient use of society's economic resources and thus leads to a maximisation of societys economic wealth". Comment.    (5)

3.    Complete the given Balance Sheet and Profit & Loss Statement using the following information:    (12)

GPM 20%. OPM t0*/, NPM 5%, Tax rate 25%, Credit sales to total sales * 80%. Total Asset Turnover Ratio " 3 times. Inventory turnover" 8 times. Average Collection Period (assuming 360 days a year) = 1$ days. Current Ratio = 1.6. Long term debt to equity - 40 %

BALANCE SHEET

PROFIT & LOSS STATEMENT Rs

Sales    300000

   Cost of goods sold    .........-

Gross Profit    ...........

   Operating Expenses    ..........

Operating Profit (PBDIT)    ...........

Depreciation    I    6000

PBIT    '    ..........

- Interest    ..........

PBT    ..........

   Tax    ..........

Net Profit    .........

Attachment: jaypee-institute-of-information-technology--jiit--2008-b-e-21215-1.jpg

Earning:   Approval pending.