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BCom (IV Semester) Examination
COMMERCE
Paper : BCM–403 (New Course)
( Financial Management )
Full Marks : 80
Pass Marks : 35%
Time : Three Hours
Note : 1. Answer all the questions as per instructions in each Section.
2. The figures in the margin indicate full marks for the questions.
Section—I
1. Answer any five from the following questions : 2×5=10
(a) Give two goals of Financial Management.
(b) What is financial planning?
(c) Give two features of pay-back period.
(d) Define working capital.
(e) What is leverage?
(f) Explain the term ‘EBIT’.
(g) Define profitability index.
Section—II
2. Answer any four questions from the following : 5×4=20
(a) Explain in detail the future value of money.
(b) What is financial decision? Explain its scope.
(c) What is cost of capital? How is it determined?
(d) Distinguish between Hire purchase and Instalment purchase system.
(e) What is Debt? What are different types of debts?
(f) If total assets are of Rs 30 lacs and current liabilities are 20% of total assets and non-current assets are twice of current liabilities, calculate working capital of the business.
(g) Explain the role of finance in a business concern.
(h) What is EPS? Explain the factors that affect EPS.
Section—III
3. Answer any five questions from the following : 10×5=50
(a) Explain the factors which affect the valuation of shares and bonds.
(b) Calculate the accounting rate of return for the following investment :
Life of the investment is four years and there is no scrap value at the end of four years.
(c) What is the importance of leverage in financial decisions? Explain in detail.
(d) What is dividend? What are the factors which affect the dividend policy of a company?
(e) Elaborate different techniques of capital budgeting.
(f) Balance Sheet of Teeta Ltd., as on 31st March, 2020 stood as under :
On 31st March, 2020 the fixed assets were valued at Rs 1,75,000 and the goodwill at R 25,000. Compute the value of company’s shares by assets method.
(g) What is net present value? How is it calculated?
(h) What is the importance of valuation of shares? Explain in detail.
(i) Explain the factors which affect the working capital requirements of a company.
