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    Financial-Management-min

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    Financial-Management-min

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    Tanmay Patel
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    Financial-Management-min

    Uploaded by

    Tanmay Patel

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    ‘0 08 SS - 471 Ill Semester B.Com. Examination, November/December 2018 (F+R) (CBCS) (Semester Scheme) (2015 — 16 & Onwards) COMMERCE 3.4 : Financial Management Time : 3 Hours Max. Marks : 70. Instruction : Answer should be written completely either in Kannada or English. SECTION — A Answer any five sub-question. Each sub-question carries two marks. (5x2=10) 1. a) What is financial leverage ? b) What is wealth maximization ? c) What do you mean by stock dividend ? d) Calculate the present value of % 40,000 received after 5 years, if the discount rate is 10%. e) State four components of working capital. f) Initial investment of € 10,00,000, residual value % 2,00,000, working life is 5 years, additional working capital = 1,00,000. Calculate average investment. g) Name the two models used for valuing equity shares. SECTION -B Answer any three questions. Each question carries six marks. (3x6=18) 2. Briefly explain the various forms of dividend. 3. Mention the functions of financial management. PTO. $$ -471 {0 Wa + The following information is available in respect of a product : Units sold — 60,000 Sales price per unit —% 12 Fixed cost ~ % 60,000 Variable cost ~ 6 per unit 10% debt capital of & 1,20,000 Calculate all the types of leverages. 5. A bank manager offers a scheme in which Mr. Mallesh gets & 1,000, 2,000, 3,000, % 4,000, & 5,000 at the end of each year for a period of 5 years at the discount rate of 9% for a lump sum deposit of = 12,000. Is it advisable to invest = 12,000 to Mr. Mallesh ? Advise him. 2 . The initial cash out lay of a project is € 1,00,000 and it generates cash inflows of € 40,000, 30,000, ¥ 50,000 and % 20,000 10% rate of discount. Calculate profitability index. Years 1 2 3 4 Discount 0.909 0.826 0.751 0.683 factors at 10% SECTION -C Answer any three questions. Each question carries fourteen marks. (3x14=42) 7. Briefly explain the factors influencing the amount of working capital. 8. Explain the meaning, scope and importance of financial management. 9. Sonu Ltd., company has equity share capital for 10,00,000 divided into shares of & 100 each. It wishes to raise further % 6,00,000 for expansion plans. The company plans the following financing schemes : a) All equity shares. b) € 2,00,000 in equity shares and 4,00,000 in debt @ 10% p.a. ©) All debt at 10% p.a. d) % 2,00,000 equity shares and % 4,00,000 in preference share capital with rate of dividend at 8%. The company has estimated EBIT at % 3,00,000. The corporate rate of tax is 50%. Calculate EPS in each case. Give a comment as to which capital structure is suitable. (NC 0 3 SS -471 10. Acompany is considering purchasing a machine. Two altemative machines are available machine — A and B each costing 1,00,000. Eamings after depreciation and taxation are expected to be as follows : Years Estimated net cash flows Machine - A (Rs.) | Machine — B (Rs.) 1 30,000 10,000 = 40,000 30,000 3 50,000 40,000 4 30,000 60,000 5 20,000 40,000 Calculate : a) Payback period b) Net present value, at 9%. ‘Assume straight line method of depreciation. The discount factor is as under : Year 1 a 3 4 Ss DF@9% 0.971 0.842 0.772 0.708 0.650 1 . Following information is given to you, evaluate the projects by using return on investment and NPV methods. Project X Project Project Z z z x Investment a 70,000 80,000 90,000 Return at the end of 1* year 40,000 50,000 55,000 Return at the end of 2”¢ year 30,000 25,000 40,000 Return at the end of 3 year 20,000 25,000 20,000 NPV may be calculated at 20% discount factor. Year 1 2 3 DF @ 20% 0.833. 0.694 0.578 ss-471 7 FEB eBS Qyen- a ctnadencide ecb sérien ugon, 32 ge axed vod. (6x2=10) 1. a) wrowoad 28 accded 2 b) mosis rogetdes norites 2 ©) map? enemas aocides 2 d) Be 10 dodmabs dmndo, 5 Sarre Sods aefotvews € 40,000 ren Bye By cease. e) dacs wommndd ainamide 4 worriva Sea. f) Bo@ocws wowan¥ F 10,00,000, seange BPe, F2,00,000, aeodos RABO 5 dairries, aeRO Thactus wows? F 1,00,000 ane, Acoso aewtabay, BoreroG@ouD9. 9) maing, Secrid APO eddie aded Sncorivay Bor. AQyprt- wo duns cdnajmciie shad algrerk eugon, a3 sé wed eos, (x6=18) 2. DOF enypos dazitday sosgiawn asioa. 3. Broward Aira Mornay BAOr, 0 & sS-471 4, word evga smtoSobo Sedodoas : Buse Awvot3 — 60,000 gor stadcs anones tid —F 12 ag Se,- F 60,000 cxcdeartt ag, a quads - 6 Be. 10. mao wows - F 1,20,000 en, wortob Aépés (Leverages) S{=ne. a . work mosdatangid toch oSeeesdoco mpetcios Z 12,000 rida #e.9 doctnatds adele), B¢ woeigeeo F 1,000, % 2,000, % 3,000, € 4,000 sis F 5,000 rive, 33 soir woa,ci), 5 atsleridatoit aicdostamps. & 12,000 rv aiaasarn aagsse ? Noss Rea. 6. suoth oSneesiocs sa dortd arta dad sox F 1,00,000 ade aris sich awaioas % 40,000, & 30,000, % 50,000 =z) % 20,000 neay Be, 10 3 bedrads add, emprbget, weld ememoss Aremoeial, Sand. Years (sain) 1 2 3 4 Bc.10 doeincds 0.909 0.826 0.751 (0.683 gos oupn- cdnaimnicie 3 salen eugon, 33 B8414 woe. (3x14=42) 7. cha@okes wodsnds sags shed Byes wecos vouriay, AosgewA ROA. 8. aromas anrarlob ome, mag sow) stoelg,ridky, OatOR. $s-471 6 AAO aa 9. Armes Doddarg BomNord maiwa, Fedo wordmoy T 100 d atwsdedelox F 10,00,000 TivandgyT. sordosd 33 ARTes ofmewsimwN % 6,00,000 TW, aBegpen segseet. etd sedowos Arm AS BAsoba odeeazacs. a) agRy main, secre, b) making, $088 X 2,00,000 ads ve. 10 dmexgzzo X 4,00,000. ©) aoRp ¥e 10 domo asad, d) rosing, Secbrive, % 2,00,000 aise ange gecbrwO, F 4,00,000 ve. 8 dents adde, BoxNow EBIT F 3,00,000. tostox Sori dd Se. 50 aac: Besos Tegotay (EPS) Geant aoed ainsi worse dud Aegean acm Aes ate. 10. work dosttosbo nvoct> cxbe stay Dornan sloriesnacs cxbog— A aay B. 32 ccbog tes F 1,00,000 aside soa Soros dovd doalnow ried et Brdordos AOC eMC, Baten Soren Ray arith SoH) edd03 — A (2) oses,- B®) % 30,000 10,000 2 40,000 30,000 3 50,000 40,000 4 30,000 60,000 5 20,000 40,000 a) comes eto b) dae abs ate, (NPV) de 9 cides, Sec aiee Oqpaae, cmb’. dodnerbs eos : oar 1 2 3 4 5 Deiwods eed 0.971 0842 = 0.772 0.708 0.650 (@ 9%) (a0 08 7 sS-471 11, @e8o8 artoSowo Heard, Beasatd aed riod sds) Zaye Daye ae, (NPV) agnaiiday, esodach odeensiota; BRO

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