JUNE-2021
B.Com. (IV Semester) Examination
COMMERCE
Paper : BCM-403 (New Course)
(Financial Management)
Full Marks : 80
Pass Marks : 35%
Time : Three Hours
Notes: (i) Answer all questions.
(ii) The figures in the right margin indicate full marks for the questions.
SECTION – I
1. Answer the following questions: (2X5=10)
(a) What do you mean by leverage?
(b) What is meant by pay-back method?
(c) What do you mean by IRR?
(d) Explain the term EBT.
(e) What do you mean by future value of money?
SECTION – II
2. Answer any four of the following questions:(5X4=20)
(a) State the objectives of financial management in business.
(b) Describe the role of finance in a business.
(c) State various methods of appraisal of investment proposals.
(d) What is optimum capital structure? Discuss.
(e) What are the demerits of having excessive working capital?
(f) What is NPV? How is it calculated?
(g) If total assets are Rs.50 lacs and current liabilities are 20% of total assets and non-current assets are twice of current liabilities, calculate working capital of the business.
(h) What is dividend? Explain the types of dividend.
SECTION – III
3. Answer any five of the following questions: (5X10=50)
(a) Define finance function? Discuss the scope of finance function.
(b) What is debt?”Debt is the cheapest source of funds”. Explain with suitable example.
(c) What do you mean by capital budgeting? Discuss various techniques of capital budgeting.
(d) What is financial planning? Discuss the principles of sound financial planning.
(e) What is working capital? Explain the factors which affect the working capital requirements of a company.
(f) From the following information, calculate the net present value of the two projects and suggest which of the two projects should be accepted assuming a discount rate of 10%:
