University of Allahabad 2009 B.Com , (Part-II) , Business Finance - Question Paper

B.Com. (Part-II) (New Course)
Examination, 2009
Business Finance
Paper: Tenth

Time Allowed: 3 Hours] [Maximum Marks: 100

Note: This paper is divided into part- 'A' and Part-'B'. Attempt all ques. from Part- 'A' and 3 ques. from Part-'B'. Use of calculator is not allowed.

Part-'A'

Note: Attempt all 8 ques.. ans in not more than 100 words. every ques. carries five marks.

1. What is finance function?
2. define different Financial Objectives of Business.
3. discuss the concept of Time Value of Money.
4. State the limitations of Ratio analysis.
5. compute PV Ratio, Break-even point and margin of safety from the subsequent info.

Sales 2,00,000
Variable Cost 1,10,000
Fixed cost 50,000
Net-Profit 40,000
6. Differentiate ranging from the over-capitalization and under-capitalization.
7. discuss the nature of Capital Budgeting.
8. elaborate the assumptions of Walter model?

Part-'B'
Note: Attempt any 3 ques. in maximum 600 words. every ques. carries 20 marks

9. discuss with the help of suitable illustrations the consecutive steps in the preparation of the Funds Flow Statement.
10. What is meant by Capitalization? Critically examine the theories of Capitalization.
11. What is leverage? discuss and illustrate the calculation of Operating, financial and Combined Leverages.
12. What do you mean by Profit-Volume Ratio? How does it help in Profit Planning? discuss with improper illustrations.
13. Write short notes on any 2 of the following:

(a) Character of Balance Sheet info.
(b) Cash Generated through operations.
(c) Forms of Stable Dividend.
(d) Limitations of Pay-Back Period Method.

Earning:   Approval pending.