Search Your Paper

Tuesday, March 22, 2022

BBA-Bachelor of Business Administration 2nd Semester
Financial Management

Time Allowed: Three Hours] [Maximum Marks: 80 

Note:- Attempt any four short answer-type questions from Section-A. Attempt any two questions each from Section-B and Section-C respectively.


1. (a) Write a note on Profit Maximization and Wealth Maximization.


(b) What is Capital Budgeting? 

(c) Mr. X deposits Rs. 5,000 at the end of every year for 5 years and deposits earn compound interest at 8% p.a. Determine how much money he will have at the end of 5 years. 

(d) The market price of equity share of a company is Rs. 135 each. Its expected dividend per share next year is Rs. 18 and expected to grow at 6% per year. Determine the cost of equity share. 

(e) A company has sales of Rs. 5,00,000, variable cost of Rs. 3,00,000, fixed cost of Rs. 1,00,000 and long term loans of Rs. 5,00,000 @ 10% rate of interest. Calculate the composite leverage. 

(f) What do you mean by trade credit?


2. What do you mean by financial management? What should be its basic objective in a corporate enterprise? 

3. Explain any two methods of capital budgeting. 

4. A company is considering a proposal to purchase a new machine with initial cash outlay of Rs. 5,00,000 and working capital of Rs. 60,000. The expected life of machine is 5 years with no salvage value. The company uses straight line method of charging depreciation. The estiminated cash flows before depreciation and taxes are given below :


Calculate (a) Payback period (b) Net Present Value (c) Average rate of return if the applicable income tax rate to the company is 35% and the opportunity cost of Capital of the company is 10%. You may use the following table :

Year: 1 2 3 4 5 

P.V. Factor @ 10% 0.909 826 751 683 .621

5. The following information has been taken from the Balance Sheet of a firm as of 31-12-2017 :


Determine the weighted average cost of capital of the firm. It had been paying dividends at a constant rate of 20% per annum.


6. Explain in detail relevance concept of dividend policy or the theory of relevance. 

7. Briefly discuss long term and short term source of company finance. 

8. Estimate the working capital requirement of a company which maintains level of activity of 2,00,000 units at selling price Rs: 12/per unit from the following particulars :

Element of Cost :

Material 40% 

Direct Labour   20%

Overhead 20% 

Further Information : 

(a) Raw materials are expected to remain in stock for an average of one month.

(b) Material will be in progress on average half a month and is assumed to be consisting of 100% of raw material, wages, and overheads. 

(c) Finished goods are required to be in stock for an average period of one month.

(d) Credit allowed to debtors is two months.

(e) Credit allowed by the supplier is one month. 

Assume that sales and production pattern is even throughout the year

9. (a) A company expects a net income of Rs. 80,000. It has Rs. 2,00,000, 8% debentures. The equity capitalisation rate of company is 10%. Calculate the value of the firm and overall capitalisation rate according to Net Income Approach (ignoring income tax).

(b) If the debenture debt is increased to Rs. 3,00,000, what shall be the value of the firm and overall capitalisation rate ?


Post a Comment

North India Campus



North India Campus. Powered by Blogger.

Welcome to North India Campus

Search Question Paper


1st & 2nd Semester BE 1st Semester B.Com 1st Semester BBA 1st Semester BCA (D) 1st Semester Bsc. IT (D) 1st Semester Bsc. IT 1 1ST Semester M.SC IT(D) 1st Semester M.Tech 1ST Semester MBA 1st Semester MCA 1st Semester MCA (D) 2nd Sem B.Com 2nd Sem BB 2nd Sem BBA 2nd Sem BCA 2nd Sem BCA (D) 2nd Sem BSC IT(D) 2nd Sem BSC(IT) 2nd Semester MBA A Foundation Course in Human Values and Professional Ethics Accounting and Financial Management Accounting and Financial Managementm ACCOUNTING FOR MANAGEMENT Adolescence and Family Education B.Ed (2012) Adolescence And Family Education B.Ed (Dec 2013) Adolescence And Family Education B.Ed (Dec 2014) ADVANCE SOFTWARE ENGINEERING Advanced Accounting 2 ADVANCED COMMUNICATION SYSTEMS ADVANCED MATHEMATICS FOR ENGINEERS Aligarh Muslim University Applied Physics 1 B.Ed (Dec 2008) B.Ed (Dec 2009) B.Ed (Dec 2011) B.Ed (Dec 2012) B.Ed (Dec 2013) B.Ed (Dec 2014) B.Ed (June 2008) B.Ed (June 2009) B.Ed (June 2015) BA 1 Syllabus Bachelor in Science Fashion and Technology Basic Accounting Basic Chemistry Basic Electrical Engineering Basic Electronics Basic Mathematics BSC 1 Basoc Accounting BBA 1 BBA 2 BCA Question Papers BCA Syllabus 1 Bridge Course in Mathematics Bsc.IT Business Communication-1 Business Communication-2 Business Communication-I 2 Business Environment 2 Business Laws 1 Business Mathematics Business Organisation and Management Business Statistics 2 C C Programming C Programming Bsc IT 1 C Programming Lecture Videos CADM 1st Semester Communication 2 Communication and Soft Skills Communication Skills Communication Skills 1 Communicative English Computer and Education B.Ed (Dec 2011) Computer and Education B.Ed (Dec 2012) Computer Applications Computer Fundamental Computer Graphics Video Lecture Computer in Education B.Ed (Dec 2008) Computer in Education B.Ed (Dec 2009) Computer In Education B.Ed (Dec 2013) Computer in Education B.Ed (Dec 2014) Computer Mathematical Foundation MCA D Computer Networks 1st Semester Computer Operating System Computer Organization and Assembly Language Computer System Architecture 2 Corporate Accounting Curriculum and Instruction B.Ed (Dec 2009) Curriculum and Instruction B.Ed (Dec 2011) Curriculum and Instruction B.Ed (Dec 2012) Curriculum and Instruction B.Ed (Dec 2013) Curriculum and Instruction B.Ed (Dec 2014) Curriculuman and Instruction B.Ed (Dec 2008) DATA COMMUNICATION NETWORK Data Structure 2 Data Structures 2 data structures 2 BCA D Data Structures Through C 2 Database Management with Microsoft Access Bsc IT 1 Delhi University News Desktop Publishing Tools 2 Digital Circuits and Logic Design 2 Digital Circuits and Logic Design 2 BCA D Digital Electronics 2 Digital Electronics Fundamentals 2 Distance Education B.Ed (Dec 2008) Distance Education B.Ed (Dec 2009) Distance Education B.Ed (Dec 2011) Distance Education B.Ed (Dec 2012) Distance Education B.Ed (Dec 2013) Distance Education B.Ed (Dec 2014) Dot Net Interview Questions & Answers. Education and Evaluation B.Ed (Dec 2009) Education and Society B.Ed (Dec 2008) Education and Society B.Ed (Dec 2009) Education and Society B.Ed (Dec 2011) Education and Society B.Ed (Dec 2012) Education and Society B.Ed (Dec 2013) Education and Society B.Ed (Dec 2014) Education Technology B.Ed (Dec 2009) Educational Evaluation B.Ed (Dec 2008) Educational Evaluation B.Ed (Dec 2011) Educational Evaluation B.Ed (Dec 2012) Educational Evaluation B.Ed (Dec 2013) Educational Evaluation B.Ed (Dec 2014) Educational Technology B.Ed (Dec 2008) Educational Technology B.Ed (Dec 2011) Educational Technology B.Ed (Dec 2012) Educational Technology B.Ed (Dec 2013) ELECTRONICS SYSTEM DESIGN Engineering Drawing and Graphics Engineering Mathematics Engineering Question Paper set 1 Engineering Syllabus English and Communication Skills English and Communication Skills 2 Environmental Science 2 Finaicial Accounting Financial Accounting Financial Management 2 Sem Fundamentals of Information Technology Bsc 1 Guidance and Counseling B.Ed (Dec 2008) Guidance and counseling B.Ed (Dec 2009) Guidance and Counseling B.Ed (Dec 2011) Guidance and Counseling B.Ed (Dec 2012) Guidance and Counseling B.Ed (Dec 2013) HIV and Aids Education B.Ed (Dec 2011) HIV and Aids Education B.Ed (Dec 2012) HIV and Aids Education B.Ed (Dec 2013) Hotel Management and Air Lines Syllabus HP University News Human Resource Management Human Resource Management 2 Information Management Information Technology for Management Intoduction to microprocessor 2 BCA D Introduction of Computers BBA1 Introduction to Computers 2 Introduction to I.T MCA D Introduction to Information Technology Introduction to Information Technology(BCA) Kurukshetra University News Lecture 20 Clipping -- Lines And Polygons Macro Economics 2 Management Syllabus Managerial Economics Marketing Management 2 Master Of Technology M-Tech Syllabus MBA Papers MCA Notes MCA Question Papers Mercantile Law 2 Metal Cutting Question Paper Metal Forming Question Paper Micro Economics Network Security NEURAL NETWORKS & FUZZY LOGIC Object Oriented Programming in C++ Object Oriented Programming in Cpp OOP CPP 2 Operating system (BCA) Operating System Bsc IT 1 Organisational Behaviour Organization Behaviour 2 Other Universities Others Panjab University News PCM 2 BCA D PGDCA Pharmacy Syllabus Principles and Practices of Management principles of management 2 Production and Operations Management 2 Programming in C Programming in C MCA D Programming Logic Development with C Psychology of Learning and Development B.Ed (Dec 2013) Psychology of Learning and Development B.Ed (Dec 2008) Psychology of Learning and Development B.Ed (Dec 2009) Psychology of Learning and Development B.Ed (Dec 2011) Psychology of Learning and Development B.Ed (Dec 2012) PTU Affiliated Colleges of Integerated College PTU Affiliated Colleges of Management College PTU Affiliated Colleges of Architecture PTU Affiliated Colleges of Engineering PTU Affiliated Colleges of Pharmacy College PTU Forms Download PTU News and Events Quantitative Techniques RDBMS 2 RDBMS-I 2 Relational Database Management System Research Methodology 2 SAD 2 BCA D Syllabus of Computer Applications Syllabus of Journalism and Mass Communication Syllabus of Medical Laboratory Science System Analysis and Design System Analysis and Design 2 System Analysis and Design MCA D Teacher and School B.Ed (Dec 2008) Teacher and School B.Ed (Dec 2009) Teacher and School B.Ed (Dec 2011) Teacher and School B.Ed (Dec 2012) Teacher and School B.Ed (Dec 2013) Teacher of English B.Ed (Dec 2009) Teaching of English B.Ed (Dec 2008) Teaching of English B.Ed (Dec 2011) Teaching of English B.Ed (Dec 2012) Teaching of English B.Ed (Dec 2013) Teaching of Mathematics B.Ed (Dec 2009) Teaching of Mathematics B.Ed (Dec 2011) Teaching of Mathematics B.Ed (Dec 2012) Teaching of Mathematics B.Ed (Dec 2013) Teaching of Science B.Ed (Dec 2008) Teaching of Science B.Ed (Dec 2009) Teaching of Science B.Ed (Dec 2011) Teaching of Science B.Ed (Dec 2012) Teaching of Science B.Ed (Dec 2013) Teaching of Social Studies B.Ed (Dec 2008) Teaching of Social Studies B.Ed (Dec 2011) Teaching of Social Studies B.Ed (Dec 2012) Teaching of Social Studiess B.Ed (Dec 2013) Teaching of Social Study B.Ed (Dec 2009) Technical Communication UGC NET Computer Science Question Paper Uttarakhand Open University Video Lecture Web Technologies 1st Semester Web Technologies 2 Welding Technology Question Paper Workshop on IT and E-Commerce 2