Punjab Technical University 2007 B.B.A ( 4sem)- FINANCIAL MANAGEMENT (BB - 402) - Question Paper
Monday, 08 April 2013 12:15Web
FINANCIAL MANAGEMENT (BB - 402)
Time : 03 Hours Maximum Marks : 60
Instruction to Candidates:
1) part - A is compulsory.
2) Attempt any 4 ques. from part - B.
part - A
(10 X two = 20)
Q1)
a) elaborate the objectives of financial management?
b) What do you mean by explicit and implicit cost of capital?
c) What is Pay back period method?
d) discuss arbitrage process.
e) How cost of equity capital can be calculated?
f) discuss MM approach of capital structure.
g) discuss investment decision of financial management.
h) What do you mean by stock dividend?
i) discuss permanent working capital.
j) What is NPV method of capital budgeting?
part - B
(4 X 10 = 40)
Q2) discuss different approaches to finance function.
Q3) What is meant by financial leverage? Differentiate ranging from operating leverage
and financial leverage.
P.T.O.
Q4) explain the merits and limitations of weighted avg. cost of capital? What
are the issues in their calculation?
Q5) discuss different sources of raising working capital finance.
Q6) Shanker steels Ltd. is planning to problem 10% debentures of Rs.100 every at
par.These debentures are redeemable at a premium of 10% after five years. The
floatation costs are expected to be 4% of the net proceeds of the problem. The
corporate income tax is 40%. obtain out the cost of debentures?
Q7) Bharti Organics Ltd. is considering an investment proposal to install a new
control machine. The project will consist of Rs. 100000. The facility has a life
expectancy of five years and no salvage value. The firm uses straight line
depreciation. The estimated cash flow before tax (CFBT) from the investment
proposal are as under:
Year CFBT
1 Rs. 20000
2 Rs. 25000
3 Rs. 25000
4 Rs. 30000
5 Rs. 50000
Earning: Approval pending. |