finance-questions

You might also like

Download as pdf
Download as pdf
You are on page 1of 16
POKHARA UNIVERSITY 7 oa Semester: all Yer 2019 d 0 Ful Meri: 100 AA, ore: Fondant of ancl aagsmen “| pasebtec ss < Tine 3h J Candidates are required to give their answers in their own words es far / es practicable The figures in the margin indicate full marks, 2 ‘Secon A" MCE) ver suigite cama mp ll he questions 2 -~ What is financial management? ay ‘What is the length of cash conversion cycle if an inventory turnover is 48 times, a receivable conversion period is 38 das, and ¢ payables deferral period is 30 days? (use 360 days per year) (26 Whats time value of money? “3 What are the key features of bond? S. Ditfeentinte capil stucture an faancalsrxctare of fam. © Whats ven copial? 37 Define working capital Calculate present valuc of $100 000 expert be received one year from otay at an interest rat count rate) of 10% per yea. | 9, What are the limitations of ational? {OL (Calculate expecid jun on sc I sk fie ate fs 5 pore, mat. risk premium is 4 percent and beta is 1.5. | Scion "B |) Descriptive Answer Questions Aitempe any six questions ext Ei) bse finencal management. Why s shareholder wealth maximization ; bjetive superior to pref maxinizaton objectives ofthe fm? -Aaradhya Company can lease equipment for three years making annual are or Ra 15400 atthe en of each yer for tee years stead of fessing, it can buy the equipment for RS 40,000. At thé end of third, ‘year, the equipment will have salvage value of Rs 4,000. The firm's cost ‘Of capital is 12 percent and before tax eost of debt is 10 percent. The ‘company uses staight line depreciation and has a 40 percent tax rate, Using schedules, suggests the eppropriate to the company. Use after tax cost of debt as the discount factor. ob 00l F = Bek the folowing sha ase he following shrcoier’ equity acount on 3 is ala) ‘Aion pin cpa Reine eangs Set a ‘The curent market pics af The HOG W Kea et share You se equired to show sharcbolders equity aecouns with each of the REP folowing cases: 4) festoekgivdend 5) oct woskepit ) of evn tock pit lowing dita of ABC Str forte ent er wer provided 08 Selling re er it ra "Yai cost peri Rea Fred os ‘Dereciaon a 25000 Ret fe 00 4 Manutuingespenses | Rs SOIG0 ‘mina epenses | RS. 380 | Inet 5.000 |] Prtrnss ava Reto ‘axmie 30% Nunber of sxe oF comnon | 12000 sock : 8) What hs opsatng BEF and eh REP of Be 0 1) Wha ssn’ nancial BED? |} owt eel fale th in could atin ts oa {Dhan firm bas sales of 9.500 unis, repre he come seHement ndconpieisEPS. ©) What te store's dues of operating leverage (DO!) ) and dope esos has desde 1 purchase a 128 ‘Te management fF a snochine X thi tek wil {he oo oe pid lg 9 ea sche oe ean ‘Wat do you understand by capa stuctrs? Expat the fie Cay ety ema ani wingspan fs cgkemmen sick S10 comoon 03h. fo 26 The company carey id Rs2aivikodon Ws exc gota coma of Ace te company smal ix ato ener co dete 13Mbaod cou of peteed ert b Caen e's WACK ‘he flloving data cp 0 XY2 Campin ion of ges) ene a Sie: Re ton Feds Rezo Netitcone i uick aio ines Cetra tis Daye cals ousting ‘tds Return ciy Im Cate te fowing 1) Curent Lites © Gara 3 roa Coon 2 Fee sexi" ase Asa te cane ston gion Ilo and anomer te gut that sri ste Fn Mm Nag Co Jour myer video dma east es eh US oer! re ce eee ee tebe cd 12 pen The x ch Projet ARs) [Plea BE ioa | -116009. [pmo ——[aaoo iano | 40000 <.n00 | 20000 ‘000 [20.00 soo [0.00 POKHARA UNIVERSITY Peet Bacheoe Semester Pal Yer :2018 "aramme: BCS MUM Pull Mas: 100, Course: Fundamentals Flan Management Pcs Marks: 45 Time: Shr. dats are rpurad the tir newest vn word csr 8 pracicable The resin the margin cate fl mark. Section 4 Yery Short Answer Question ~-Aiterpt all te gusto 102 1 Everest Food Copruion (EC) has ROM of 2 percent, 2 percent ‘oft margin and rtm on ogy of 30 perce: What EFC a asec umove? What se cay alpen? 2 What do you mean gy coop 3. Whats intl pblconoies Ubstouttiee domes of pack pri 5:7 Dats Cora’ tt cme & RS 100,00. Debt a te 40 cat and it ha canal invest of Re 1.0800. ha ee R ee |e | Project A | (250,000) | 60,000 | 60,000 | 60,000 | 000 | 60,000 to Project [(17.0008) 75.550 * a. a00- | 30.000 aS aT ct 4. Calculate Net Present Value of bath the projests if opparinity Cox oF 6 capital is 12% and decide which oroject would you chose under this criterion? a * +, Calculate Internal Rate of Return ofhoth the projects if opportunity cost of 6

You might also like