Hemwati Nandan Bahuguna Garhwal University 2007 M.Com Commerce FINANCIAL MANAGEMENT - Question Paper

1. "Finance Function in the business is concerned with the procurement of funds and their effective utilization".Comment on this statement,and suggest an organisational structure suitable for effective financial control of a company.
2. describe capital structure.Differentiate ranging from capitalisation and capital structure.What factors determine the capital structure of a company?
3. Explain,clearly the concept of working capital and explain the different methods of assessing working capital needs of a company?
4. What do you mean by cost of capital? What is the utility of computing weighted avg. cost of capital? compute weighted avg. cost of capital on the basis of asssumed figure?
5. What is the significance of dividend decisions in Financial management? discuss how Walter has proved that "the optimum dividend policy of a firm depends on the relationship ranging from the firms internal rate of return and its cost of capital."
6. elaborate the techniques of Financial Forecasting? explain the mechanism of every of these techniques in detail.
7. Write a short notes on any 2 of the following: (i) Miller-Modigliani approach to capital structure (ii) Sources of workinf capital finance (iii) Principal ratio and their objects (iv) Objectives of Cash Management
8. The subsequent are the summaries of the balance sheet of Mridul Ltd.as on 31st Dec 2000 and 31st December,2001: CAPITAL & LIBILITIES: 2000,2001(in Rs): Share capital-200000,260000 Reserve-50000,50000 P/L A/c-39690,41220 Creditors-39500,41135 Bills Payable-33780,11525 Bank Overdraft-59510,- Provision for tax-40000,50000 ASSETS: 2000,2001(in Rs): Goodwill--,20000 Plant & machinery-112950,116200 Building-148500,144250 Stock-111040,97370 Bills Receivable-2315,735 Debtors-85175,72625 Cash at Bank-2500,2700 The subsequent additional info is found from the General Ledger: (i) During the year ended 31st Dec,2001 an interim dividend of Rs.26000 was paid. (ii) The Asset of a different company were purchased for Rs.60000 payable in fully paid shares of the company.These asset assets consisted of stock Rs.21640.In addition sundery purchases of Plant were made totalling Rs.5650. (iii) Income tax paid during the year amounted to rs.25000 (iv) The net profit for the year before tax was Rs.62350 Prepare a statement showing the sources and application of funds for the year 2001 and a schedule of the modifications in Working capital.
9. From the subsequent details prepare statement of Proprietors Fund: Stock Velocity-6 times Debtors Velocity-2 months Capital Turnover-2 times Creditors Velocity-73 days Fixed Assets Turnover-4 times Gross Profit Ratio-20% Gross Profit was Rs.60000.Reserve and surplus amounted to Rs.20000.Closing stock was Rs.5000 in excess of opening stock.
10. Monica Industries Ltd.is considering the purchase of a new machine which would carry out a few operations at current performed by hands.The 2 option models is under considerations are "CAMELEX" and "SHIRLEX".The subsequent info is available in respect of both models:
11. Monica Industries Ltd.is considering the purchase of a new machine which would carry out a few operations at current performed by hands.The 2 option models is under considerations are "CAMELEX" and "SHIRLEX".The subsequent info is available in respect of both models: Camelex/Shirlex(in Rs): Cost of Machine-800000,1300000 Estimated life(in year)-5/6 Estimated saving in a scrap p.a-40000/60000 Additional Cost of Supervision p.a-48000/64000 Additional Cost of Maintenance p.a-28000/44000 Cost of indirect materials p.a-24000/32000 Estimated Saving in Wages: (a) Wages per worker p.a-2400/- (b) No.of workers are not required-150/200ck period,suggest as which model should be purchased.(Ignore tax).Also comment on Post Pay-back profitability of every machine. Write a short note on Net current Value Method

Earning:   Approval pending.