Business Finance, Question Paper of B.Com 4th Semester, Download Previous Years Question Paper 3

Roll No.

B. COM. (Sem.-4th)

BUSINESS FINANCE

Subject Code: BCOP-404

Time: 3 Hrs.

Note:  Section  A is compulsory; each question is of 2 marks. Attempt any four questions out of six questions under Section  B. each question is of 10 marks.

Section –A

1.     what is business finance ?

2.     give various forms of dividends.

3.     Define receivables management.

4.     What is cost of equity?

5.     What is financial leverage?

6.     What is EOQ?

7.     Define Capital Budgeting.

8.     What is venture capital financing?

9.     Rs. 1,000 were deposited into a savings account paying interest at an annual rate of 10% compounded semi-annually, what is its future value after five year?

10.                        What is ploughing back  of profits?

Section-B

11.                        Explain the theories of capital structure to evaluate impact on value of firm.

12.                        Discuss the scope and objectives of finance function in business and role of Chief Financial Officer.

13.                        Examine critically the different approaches for computing cost of equity. Discuss the merits and demerits of each.

14.                        What is working capital? Discuss the factors determining working capital requirements in an organization.

15.                          A company is considering an investment proposal to purchase a machine costing Rs. 2,50,000. The machine has a life expectancy of 5 years and no salvage value. Company’s tac rate is 40 5. It uses straight line method for providing depreciation. The estimated cash flows before tax after depreciation from the machine are as follows:

Year	CFBT	PV@10%
1	60,000	0.909
2	70,000	0.826
3	90,000	0.751
4	1,00,000	0.683
5	1,50,000	0.621

Calculate : (a) Pay back period  (b) average rate of return (c) present value and profitability Index @ discount rate

16.                        The following information pertains to XY ltd.

Earnings of the Company	Rs. 5,00,000
Dividend Pay out ratio	60%
No. of shares outstanding	1,00,00
Equity Capitalization Rate	12%
Rate of return on investment	15%

a.     What is market value per share as per Water’s model?

b.     What is optimum payout ratio and calculate market value at that level ?

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Business Finance, Question Paper of B.Com 4th Semester, Download Previous Years Question Paper 2

Roll No.

Total No. of Questions: 07]

B. COM. (Sem.-4th)

BUSINESS FINANCE

Subject Code: BCOP-404

Paper ID: [B1143]

Time: 3 Hrs.

INSTRUCTIONS TO CANDIDATE:

1. SECTION-A is COMPULSORY consisting of TEN questions carrying TWO marks each.

2. SECTION-B contains SIX questions carrying TEN marks each and students

has to attempt any FOUR questions.

SECTION-A

l. Write short notes on :

a) Need for calculating Future value

b) Operating Lease

c) Present value annuity factor

d) Temporary working capital

e) Capital Budgeting

f) Cost of preference shares

g) Deep Discount Bonds

h) Credit terms

i) ABC technique of inventory control

j) Wealth Maximization

SECTION-B

2. “In the past few years, there has been substantial increase in the role

of finance manager”, give your comments. Also explain in detail the role

of finance manager in present day business enterprises.

3. i) Given an option to receive money now or later, people prefer to

receive money now, why?

ii) What is dividend policy? Also discuss the various forms of dividend.

4. Discuss MM hypothesis regarding affect of Capital structure on value of

firm.

5. From the following particulars, calculate the cost of equity

Market value of share = Rs.145

Dividend next year = Rs. 5

Dividend Growth Rate = 8% during next 5 years, 7% from sixth year

onwards and up to 10th year and thereafter at 6% forever.

6. What is venture capital? Write a note on organizations providing venture

capital.

7. What is net working capital? Explain the factors affecting working capital

requirement of a business enterprise. 

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Business Finance, Question Paper of B.Com 4th Semester, Download Previous Years Question Paper 1

Roll No.

Total No. of Questions: 07]

B. COM. (Sem.-4th)

BUSINESS FINANCE

Subject Code: BCOP-404

Paper ID: [B1143]

Time: 3 Hrs.

INSTRUCTIONS TO CANDIDATE:

1. Section-A is compulsory.

2. Section-B Attempt any four questions out of six questions. 

SECTION-A

Q. 1. Write short note on the following:

(a) Financial management

(b) Annuity

(c) Leverage

(d) EOQ

(e) Accounts Payables

(f) Working Capital

(g) Stock dividend

(h) Net present Value

(i) Lease Financing

(j) Weighted average cost of capital

SECTION-B

Q. 2. Define Financial Management. Discus the role of Chief Financial Officer in financial management.

Q. 3. Discus various long-term sources of inane available for project financing.

Q. 4. X Co. Ltd. Wants to invest Rs. 1000 in a project from which it can realize Rs. 200 in the 1st year, Rs. 300 in the 2nd year, Rs. 400 in the 3rd year, Rs. 4500 in the 4th year and Rs. 500 in the 5th year. You are required to compute the payback period of the project.

Q. 5. Discus various types of working capital. Elaborate in detail the significance of working capital for a firm.

Q. 6. Define dividend. Discus in detail the factors influencing dividend policy of a firm.

Q. 7. You deposit Rs. 4, 00 each year into a retirement account paying 8% interest. How much will you have in 25 years when you retire?

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