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    Term-End Examination June, 2013 Mc0-07: Financial Management

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    BinayKP
    The document is a study guide for a Master of Commerce exam. It contains 9 questions on the topic of financial management. The questions cover various concepts such as financial functions, risk and return, capital budgeting, working capital management, and financial analysis. Students are instructed to answer 5 of the 9 questions in detail over the course of a 3 hour exam.

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    Term-End Examination June, 2013 Mc0-07: Financial Management

    Uploaded by

    BinayKP
    49 views6 pages
    The document is a study guide for a Master of Commerce exam. It contains 9 questions on the topic of financial management. The questions cover various concepts such as financial functions, risk and return, capital budgeting, working capital management, and financial analysis. Students are instructed to answer 5 of the 9 questions in detail over the course of a 3 hour exam.

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    june13

    Original Title

    MCO-7 june13

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    The document is a study guide for a Master of Commerce exam. It contains 9 questions on the topic of financial management. The questions cover various concepts such as financial functions, risk and return, capital budgeting, working capital management, and financial analysis. Students are instructed to answer 5 of the 9 questions in detail over the course of a 3 hour exam.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    49 views6 pages

    Term-End Examination June, 2013 Mc0-07: Financial Management

    Uploaded by

    BinayKP
    The document is a study guide for a Master of Commerce exam. It contains 9 questions on the topic of financial management. The questions cover various concepts such as financial functions, risk and return, capital budgeting, working capital management, and financial analysis. Students are instructed to answer 5 of the 9 questions in detail over the course of a 3 hour exam.

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    No.

    of Printed Pages : 7 MCO-07


    MASTER OF COMMERCE
    CD Term-End Examination
    co June, 2013
    MC0-07 : FINANCIAL MANAGEMENT

    Time : 3 hours Maximum Marks : 100


    Weightage : 70%
    Note : Attempt any five questions.

    1. (a) What is financial management ? Explain


    the basic finance functions. 12, 8
    (b) In what ways the wealth maximisation
    objective is superior to profit maximisation
    objective ?

    2. (a) Explain the concept of risk and return.


    What are the various statistical techniques
    available to measure risk ? 10, 10
    (b) What is Capital Asset Pricing Model
    (CAPM) ? Explain its assumptions and
    implications.

    3. (a) What is capital budgeting ? Why is it


    significant for the business firms to prepare
    it ? 10, 10

    MCO-07 1 P.T.O.
    (b) A company is considering the following
    investment projects :
    Cash flows (Rs)
    Co C1 C2 C3
    Project A —10,000 +2,000 +4,000 +12,000
    Project B —10,000 +10,000 +3,000 +3,000
    Rank the projects according to the
    Accounting (Average) rate of return (ARR)
    method.

    4. Explain the concept of project finance. Also


    distinguish it from corporate finance. 5, 15

    5. (a) What is purpose of holding the


    inventories ? Why is the inventory
    management important ? 10, 10
    (b) What is Economic Order Quantity ? Explain
    the process of its determination.

    6. (a) Explain the meaning, types and significance


    of working capital. 10, 10
    (b) Discuss the different methods of
    ascertaining working capital requirements.

    7. (a) What is meant by the 'buy back of shares' ?


    What is its rationale ? 10, 10
    (b) Is 'buy back of shares' really beneficial to
    the company and shareholders ? Explain.

    MCO-07 2
    8. Given below is the information of Gaurav 20
    Enterprise :
    (Rs. in lakhs)
    EBIT 1,120
    EBT 320
    Fixed Cost 700
    Calculate the following :
    (a) Degree of operating leverage;
    (b) Degree of financial leverage;
    (c) Degree of combined leverage; and
    (d) Percentage change in EPS if sales increase
    by 5%

    9. Write explanatory notes on any two of the


    following : 10, 10
    (a) Yield to Maturity method
    (b) Capital Rationing
    (c) Lease financing
    (d) Cash budget

    MCO-07 3 P.T.O.
    71.111.31-1.-07

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    :3 ..P.12
    :100
    chi : 70%

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    1. (a) 14tq el-q1 t? 311tTRIV fa-th74

    I 12, 8
    (b) fit art '#W zk-q-z[ ` -r14
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    2. (a) ft§11:1 - ?-11. ct t-ichc-4-11 Wri


    )- .fug *1- Trrcr4 4)1. rafirR -111-(5.6N-C1
    10, 10
    Tft ?

    (b) X11 4 tf-144R1 1Hd 4-1'15(4 (CAPM) 42-u t?


    -44R-Errr34 -ff21-r 3111-Q a-d -ar4-9- ---1-F—A7
    -pg-4•1

    3. (a) 1:ftrf qz1Tt? °r11cRilkch frig

    m7-9-r fit? IA 10

    MCO-07 5 P.T.O.
    (b) f-) r14-ircir(Acr 4ftgI uT fa rt ch(
    t:

    (v.)
    CoClC2 C3
    LIRq Alf A -10,000 +2,000 +4,000 +12,000
    B -10,000 +10,000 +3,000 +3,000
    LI t4)A -11311 chl rloicm (3Nr-ff)
    31T4R -ER 1--r-- 7 I

    4. fat on`l -quki v 14P41Ali 5, 15


    fay f9Trq fa-u 34- T

    5. (a) pfdTffi4 'Wr3-trq-4 6)cil t? -ef-W 10D14.1. 4111


    11T-Tuf 10, 10
    (b) 31Tift311 T a-egit? 'Ti-kf9NiTtrf chbfWzrf
    r

    6. (a) chi cis t alq, 31-*-7 1:17-


    ca a1
    10, 10
    (b) 0111440 rn13ll—d-FrWM ch) ffftTif WT4 ch
    fqftrt cril Fa d-crit

    7. (a) tzr4 %r qrr-cR:r 47q %r cl-q1 3i0 t ? Tom


    ,
    T-*-NTT t? 10, 10
    (b) et-qi 7171-4r arm shy 31Tr-. %-Tcrt zr-r
    tzr-{4rrTzff % -riT-qzr% t ? quik %-1-F-
    A7

    MCO-07 6
    711Td 719-9-r 14-1 t: 20
    8.
    (T. .mu
    EBIT 1,120
    EBT 320
    700
    :

    (a) 4 rs4,11 (DOL)

    (b) 4;1* (DFL)

    (c) (DCL)

    (d) 317T7 f-d-WzT 5% 74FT t tzR 347i 4


    mrft-4-4-9.

    9. r-p-iiiirod f t -ER fq-RTR tocruftfifes :


    10, 10
    (a) LirtLichicil 7.{ rciN (YTM)

    (b) •T7Tf4TT
    (c) 71-a
    (d) -47

    MCO-07 7

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