Punjab Technical University 2010-4th Sem B.B.A Financial Management - Question Paper
Paper ID [B0119]
[Total No. of Pages : 02
Roll No...........................
Total No. of Questions : 13]
(Please fill this Paper ID in OMR Sheet)
BBA (BB - 402) (S05) (O) (LE) (Sem. - 4th) FINANCIAL MANAGEMENT
Maximum Marks : 75
Time : 03 Hours
Instruction to Candidates:
1) Section - A is Compulsory.
2) Attempt any Nine questions from Section - B.
Section - A
(15*2 = 30)
Q1
a) Objective of Financial Management.
b) Scope of Financial Management as per traditional approach.
c) Trading on equity.
d) Pay Back Period Method.
e) Cash Flows.
f) Discount Rate.
g) Tax shield on Cost of Debt.
h) Cost of Equity.
i) Opportunity cost of capital. j) Internal Equity.
k) Net Working Capital.
l) Permanent Working Capital.
m) Preference Shares.
n) Operating Leverage.
o) Capital Structure.
(9*5 = 45)
Q2) What is Financial Management? Explain the importance of Financial Management.
Q3) Explain the relationship between Investment and Financing Decisions.
Q4A How Wealth maximization is a superior objective than Profit maximization? Q5) Critically evaluate the Walters model for Dividend Policy.
Q6) What is Capital Budgeting? Explain the importance of Capital Budgeting. Q7) Compare and Contrast NPV with IRR.
Q8) What is cost of capital? How will you calculate the cost of redeemable and irredeemable preference share capital?
Q9) X Ltd. is to decide regarding whether the project A whose details are given below should be accepted or rejected :
Project A
Cash Outflow Rs. 12 Lacs Life 5 years Discount Rate 12%
Scrap Value Rs. 15000 Cash Inflow
Year 1 2 3 4 5
Cash Inflow 40 35 20 15 40 @Rs. in Lacs)
Use NPV method of Capital Budgeting for evaluation of Proposal.
QIO) Capital structure affects the value of the firm. Explain this statement with the help of theories of capital structure.
QII) Write a note on factors affecting the capital structure.
Q12) Working Capital is the blood in the nerves of the organization. Explain.
Q13) Explain the approaches to working capital finance.
A-27 P
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| Earning: Approval pending. |
