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PSIT College of Higher Education

EVEN Semester, Session 2022-23, Assignment – IV
BBA– II Semester
Business Finance [F010201 T(B)]

Time: 45 Minutes M. M. 20
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Q.1 Describe Functions of Finance & objectives of Financial Management. [5 Marks]

(CO1)

Q.2 Ankim Ltd., has an EBIT of Rs 3, 20,000. Its capital structure is given as under:
9% Debentures Rs. 200000
13% Preference Capital Rs. 100000
Equity Share Capital of Rs. 10 each Rs. 400000
The company is in the tax bracket of 50%.
Calculate the Earnings per share. [5 Marks]
(CO2)

Q.3 A company whose stock is trading at Rs. 110 per share. This company requires an 8%
minimum rate of return and will pay a Rs.3 dividend per share next year (D1), which is
expected to increase by 5% annually (g). Calculate the price of share. [5 Marks]
(CO3)

Q.4 Explain the concept of working capital & sources of short term financing. [5 Marks]
(CO4)