Barkatullah University 2010-3rd Sem B.B.A (ester) , , FINANCIAL MANAGEMENT, (BT-131), BHOPAL - Question Paper

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B.B.A. (Third Semester) EXAMINATION, 2010
FINANCIAL MANAGEMENT
(BT-131)
Time : 3 Hours
Maximum Marks: 35
Note: Attempt ques. as per instruction in the part.

(Section-A)
Attempt any 5 ques..
1. State actual or False
i. “Financial Management” has been authored by Khan and Jain.
ii. “Pay-Back Period” method is the most popular method of capital budgeting.
iii. “Modigliani-Miller Approach” relates to capital structure.
iv. Capital gearing is a ratio based concept.
v. Time element is considered in the Pay-Back Period.
vi. Inventory management is not an important component of Woring Capital Management.
vii. Concept of cumulative savings is not concerned with capital budgeting.
viii. By Issuing Bonus Shares under capitalization cannot be remedied.

(Section-B)
Note: Attempt any 3 ques..
2. What do you mean by Financial Management?
3. describe “Under- Capitalisation”.
4. What is Debt Equity Ratio? give formula.
5. State the objectives of “Capital budgeting”.
6. What is capital structure determination decision?

(Section-C)
Note: Attempt any 3 ques..
7. Differentiate the concept of “overcapitalisation” and “undercapitalisation”.
8.Write a detailed note on funds flow analysis.
9. explain the functions of Financial Management.
10. discuss the Modigliani-Miller approach of capital structure.
11.Calculate working capital with the help of operating cycle method. Assuming 360 days in a year:
i. Sales 10000 units ----- Rs 100 per unit
ii. Raw Material ----- Rs 55 per unit
iii. Labour ----- Rs 30 per unit
iv. Overhead ----- Rs 18 per unit
v. Average collection (credit) period for customers 45 days.
vi. Average payment (credit) period for supplier 50 days.
vii. Raw material storage period 30 days.
viii. Finished goods storage period 15 days.
ix. Production cycle period is of 25 days

Earning:   Approval pending.