530 - FINANCIAL MANAGEMENT - ANNAMALAI UNIVERSITY EXAM ANSWER SHEETS PROVIDED WHATSAPP OR TELEGRAM 91 9924764558
CONTACT
DR. PRASANTH BE MBA PH.D. MOBILE /
WHATSAPP: +91 9924764558 OR +91 9447965521 EMAIL: prasanththampi1975@gmail.com WEBSITE: www.casestudyandprojectreports.com
(HUMAN RESOURCE MANAGEMENT)
(FIRST YEAR)
530: FINANCIAL MANAGEMENT
(New Regulations)
(Common with MBA Marketing Mgt. and MBA Financial Mgt.)
Time: Three hours
Maximum: 75 marks
SECTION-A
(53=15)
Answer any FIVE questions
1.
What are the goals of finance function?
2.
Define working capital.
3.
State the hedging approach.
4.
What is preferred stock?
5.
Define retained earnings.
6.
Write a short notes on leverages.
7.
What is merger?
8.
What do you meant by EVA?
SECTION-B
(3×10=30)
Answer any THREE questions
9.
Explain the objectives of cash management.
10.
Bring out the various sources of long-term finance for corporate entry in India.
11.
A firm’s return available to shareholders is 15%. The average tax rate of share holders in 40% and it is expected that 2% is brokerage cost that shareholders will have to pay while investing their dividends in alternative securities. What is the cost of retained earnings?
12.
Explain the factors that influence dividend policy of a firm.
13.
Videsh limited is keen on reporting an earnings per share Rs. 6.00 after acquiring Swadesh limited. The following financial data are given.
Videsh limited
Swadesh limited
Earning per share
Rs.5.00
Rs.500
Market price per share
Rs.60.00
Rs.50.00
Number of shares
10,00,000
8,00,000
There is an expected synergy gain of 5 percent what exchange ratio will result in a post merger earnings per share of Rs.6.00 for videsh limited?
SECTION-C
(1×15=15)
Answer any ONE question
14.
Following information have been furnished by Prakash ltd.
i) Orders must be placed in multiple of 100 units.
ii) Requirement for the year are 3,00,000 units
iii) The purchase price per units is Rs.3
iv) Carrying cost is 25% of the purchase price of the goods
2 4970
1 0
v) Cost per order places in Rs.20
vi) Desired safety stock is 10,000 units, this amount is on hand initially,
vii) Three days are required for delivery
Calculate:
a) EOQ
b) How many orders should the company placed each year
c) At what inventory level should an order placed?
15.
A company has a choice of the following three financial plans. You are required to calculate the financial leverage in each case and interpret it.
X
Rs.
Y
Rs.
Z
Rs.
Equity Capital
2,000
1,000
3,000
Debt
2,000
3,000
1,000
Operating profit(EBIT)
400
400
400
Interest @10% on debt in all cases.
16.
Explain the operating cycle in financial management.
SECTION-D
(1×15=15)
(Compulsory)
17.
A newly formed company ABC Ltd. has applied for a short term loan to a commercial bank for financing its working capital requirements. You are required by the bank to prepare an estimate of the requirements of the working capital for that company. Add 10% to your estimate to cover unforeseen contingencies. The information about the project profit and loss a/c of the ABC co is under:
Amount
Sales
21,00,000
Cost of goods sold:
15,30,000
Gross profit:
5,70,000
Administrative expenses
1,40,000
Selling expenses
1,30,000
2,70,000
Profit before Tax
3,00,000
Provision for tax
1,00,000
Cost of goods sold has been derived as follows:
Materials used
8,40,000
Wages and manufacturing expenses
6,25,000
Depreciation
2,35,000
17,00,000
Less: Stock of finished goods(10% produced not get sold)
1,70,000
15,30,000
The figure given above relate only to the goods that have been finished and not to work in progress; goods equal to 15% of the year’s production (in terms of physical units) are in progress in an average, requiring full material but not only 40% of the other expenses.
The company believes in keeping two months consumption of material in stock. All expenses are paid one month in arrear, suppliers of material extend 1½ months credit, sales are 20% cash, rest are two months credit, 70% of the income tax has to be paid in advance in quarterly instalments. You can make such other assumption as you think necessary for estimating working capital requirements.
********
No comments:
Post a Comment