Madras University (UnOM) 2009 B.B.A Business Administration Financial Management - Question Paper

November 2009 32082/PN3B/NG5A
Financial Management
TIME : 3 HOURS MAXIMUM : 100 MARKS
PART A -(10X3=30 MARKS)
ans any 10 ques.
All ques. carry equal marks

1. What is cost accounting?
2. What is internal audit?
3. What is internal reporting?
4. What is marginal costing?
5. What is cost ascertainment?
6. What is profit planning?
7. What is cost of equity?
8. What is cost of preference capital?
9. What do you mean by capital structure?
10.What is equity share?
11.What is public deposit?
12.What is maximization of return?

PART B -(5X6=30 MARKS)
ans any five ques.
All ques. carry equal marks
13.Explain the scope of management accouting.
14.Enumerate the limitations of management accounting.
15.Explain the assumptions of break analysis.
16.Describe the significance of financial planning in financial management.
17.Explain the classification of cost of capital.
18.Explain the imoportance of various kinds of leverages.
19.The capital structure of a ABC limited consists of equityshare capital of Rs.100000 (10000 shares of Rs.0 each) and 8% debuntures of Rs.50000.You are needed to compute and verify the degree of financial leverages on earnings before interest and tax(EBIT)level of Rs.20000.
20.Explain the importance of financial info system.

PART c -(2X20=40 MARKS)
ans any two ques.
All ques. carry equal marks

21.Explain the importance of financial statements.
22.Assuming cost structure and selling prices I and II.Find out the P.V.ratio and break even point.

Periods Sales(Rs) Total cost(Rs)
I 1,20,000 1,08,000
II 1,40,000 1,24,000
23.A firm problems debuntures of Rs.98000 after allowing of Rs.100000 and realises Rs.98000 after allowing 2% commission to brokers.The debuntures carry an interest rate of 10%.The debuntures are due to maturity at the end of the tenth year.You are needed to compute the effective cost of debt before tax.
24.Explain the merits of issuing equity shares in a firm.

Earning:   Approval pending.