Sikkim-Manipal University of Health Medical and Technological Sciences (SMUHMTS) 2007-1st Sem M.B.A Business Administration FINANCE ISTER - Question Paper

iii. Bonus problem : A part of reserve is capitalized
iv. Stock split : A part of reserve is not capitalized
A) ii only
B) iii and iv only
C) i, iii, iv
D) ii, iii, iv
51. ABC has an EBIT of Rs. 7,00,000 at 5000 level of production. The company 600000 equity shares of rs 10 each, 14 % debentures of Rs. 600000 and 13 % Preference capital of Rs 600000. compute degree of Financial Leverage, Tax rate = 50%
A) 1.303 B) 1.206 c) 1.521 d) 1.861
52.. If Cost of Capital (k) = 11% Earning per share E1 = Rs 16
D?P Ratio Retention Ratio
1 15% 85%
2 35% 65%
3 50% 50%
compute the price per share of XYZ Ltd for internal rate of return of 12% for all the 3 cases.
A) Rs. 300, Rs. 175, Rs 175
B) Rs. 13.6, Rs 10.4, Rs 8
C) 147.82. Rs 152.94, Rs 160
D) None
53. If the estimate for current assets is Rs. 50, 000 and for current liabilities it is Rs. 30, 000, compute the Working Capital needed. Add 5% to allow for contingencies.
A) Rs. 21,000 B) Rs. 22,500
C) 18, 500 D) Rs. 20, 000
54 Rs. 2000 invested at 8% is compounded annually for two years. compute the compounded value after 2 years.
A) 2332.80 B) 2320
C) 4320 D) 4492.8


21. Financial Management is mainly concerned with the
A) Acquisition and use of funds B) Acquisition of funds only
C) Use of Funds only D) None of the above

22. Special financial matters are managed by the
A) Controller of finance B) Cashier
C) Treasurer D) Head Clerk

23. Time value of money refers to a rupee today has _____ value than a rupee after a year
A) Less B) More
C) Cheaper D) All

24. Under ______ concept interest earned on the initial principle becomes a part of the principle at the end of the period
A) Net current Value B) Discounting Value
C) Compound Value D) None

25. A stream of equal annual cash flow is called
A) Installment B) Principle
C) Cash flow D) Annuity

26. Core Current Assets are referred in
A) Tandon Committee B) Chore Committee
C) Narasimhan Committee D) None

27. Marginal cost of capital is ____

Earning:   Approval pending.