Periyar University 2009-5th Sem B.B.A -FINANCIAL MANAGEMENT-ESTER - Question Paper
(6 pages) __
s-No-2417 106 UBA 13/06 UBX 13
(For the candidates admitted from 2006-2007 onwards)
B.B.A7B.B.A. (C.A.) DEGREE EXAMINATION, NOVEMBER/DECEMBER 2009.
Fifth Semester
FINANCIAL MANAGEMENT
Time : Three hours Maximum : 100 marks
PART A (10 x 2 = 20 marks)
Answer ALL questions.
|
xy' |
Define Financial Management. |
|
V |
Who is called as financial manager? |
|
\ CO |
Define Capital Budgeting. |
|
4./ |
Define leverages. |
|
5. |
Define Capital structure. > |
|
e. |
What is net income approach? |
|
/ r: |
Define cost of capital. |
|
8. |
Define cost of debt. |
9. What is meant by working capital?
10. Define Inventory.
PART B (5 x 4 = 20 marks)
Answer ALL questions.
11. (a) What are the objectives of financial
management?
Or
(b) List out the role of financial manager.
12. (a) Briefly explain the importance of capital
budgeting.
Or
(b) What are the significance of leverages?
13. (a) - How would you determine the following?
(i) The cost of equity in the NOI approach.
(ii) The value of equity given the equity capitalization rate, EBIT and interest.
Or
(b) How will a firm go about determining its optimal capital structure*?
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14. Given Ke = 22%, floatation cost 10% and
marginal rate of taxation for dividend recipients as 40%. Find Ke.
Or
(b) Briefly explain marginal and opportunity costs of capital.
15. (a)/What are the various types of working
capital?
Or
(b) List out the different strategies adopted by accounts receivables management.
PART C (5 x 12 = 60 marks)
Answer ALL questions.
16. (a) Explain the functions of financial
management.
Or
pb) Discuss the organisational structure of Financial Management.
17. M.0 What are the different methods of ranking of
projects? Explain.
Or
(by Explain the concept of financial leverage. What are the limitations to leverage?
18./G0 Discuss the Modigliani Miller Approach theory of capital structure.
Or
(b) A company with No. 1 of Rs. 3,00,000 is attempting to evaluate a number of positive capital structures given below. What is the capital structure you recommend? Why?
|
icture |
Debt |
Kd(%) |
ke(%) |
|
A |
3,00,000 |
10 |
12 |
|
B |
4,00,000 |
10 |
12.5 |
|
C |
5,00,000 |
11 |
13.5 |
|
D |
6,00,000 |
12 |
15 |
|
E |
7,00,000 |
14 |
18 |
4
19. (a) Explain the significance of cost of capital in financial decision making.
Or
(bjThe cost of capital of a company for a company for specific sources is as under :
Cost of equity shares 14%
Cost of preference shares 10%
s *
Cost of retained earnings 13%
Cost of debentures 5%
The company wishes to raise Rs. 5,00,000 for its expansion. It is estimated that Rs. 1,00,000 will be available as retained earnings and the balance will have to be raised as under.
(i) By issue of pref. shares Rs. 1,00,000.
(ii) By issues of debentures Rs. 3,00,000.
Using marginal weights, compute weighted average cost of capital.
xplain the factors determining the working capital.
Or
What are the advantages of decentralised collection over a centralised collection?
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| Earning: Approval pending. |
