University Of Pune Question Paper
B. B. A. ( Semester - V ) Examination - 2013
(A) LONG TERM FINANCE
(Specialisation - II : Finance)
(New 2008 Pattern)
Time : 3 Hours] [Max. Marks : 80
Instructions :
(1) Question No. 1 is compulsory.
(2) Solve any four from the remaining.
(3) All questions carry equal marks.
(4) Use of calculator is allowed.
Q.1) (A) PQR Industries Ltd. has assets of Rs. 3,20,000 which have been
financed with Rs. 1,04,000 of 8% Debentures and Rs. 1,80,000 of
Equity and a General Reserve of Rs. 36,000.
The firm’s total profit after interest and taxes for the year ended 31st
March, 2011 were Rs. 27,000. It has 1,800 Equity Shares of Rs. 100
each, selling price at a market price of Rs. 120 per share and is
in the 50% tax bracket.
(a) Calculate Weighted Average Cost of Capital based on existing
capital structure by using E/p approach.
(b) Also calculate Revised Weighted Average Cost of Capital if
company raises an additional capital of Rs. 80,000 by term loan
@ 10%.
(B) Following figures are related to Pinacal Co. Sales are Rs. 20,00,000,
Variable Cost 40% of Sales, Fixed Cost Rs. 4,00,000, Interent 30,000.
Calculate Operating Leverage, Financial Leverage and Combined
Leverage.
Also state change in the above leverages if selling price is increased
by 15%.
[4372]-510 1 P.T.O.
Seat
No.
Q.2) What do you mean by Capital Structure ? Which are the various factors
which affects Capital Structure of the Company ?
Q.3) Enumerate and discuss importance of Financial Planning and steps involved
in Financial Planning.
Q.4) “The Equity Share is different from a Preference Share.” Illustrate in the
light of preferences available to Preference Shareholders.
Q.5) Discuss in detail : “Over-capitalisation is more fetal and dangerous even
though both are undesirable.”
Q.6) Write short notes : (Any Four)
(a) Trading on Equity
(b) Risk involved in Capital Budgeting
(c) Owned Capital and Borrowed Capital
(d) Types of Debentures
(e) Ploughing Back of Profits
(f) Cost of Equity Capital
B. B. A. ( Semester - V ) Examination - 2013
(A) LONG TERM FINANCE
(Specialisation - II : Finance)
(New 2008 Pattern)
Time : 3 Hours] [Max. Marks : 80
Instructions :
(1) Question No. 1 is compulsory.
(2) Solve any four from the remaining.
(3) All questions carry equal marks.
(4) Use of calculator is allowed.
Q.1) (A) PQR Industries Ltd. has assets of Rs. 3,20,000 which have been
financed with Rs. 1,04,000 of 8% Debentures and Rs. 1,80,000 of
Equity and a General Reserve of Rs. 36,000.
The firm’s total profit after interest and taxes for the year ended 31st
March, 2011 were Rs. 27,000. It has 1,800 Equity Shares of Rs. 100
each, selling price at a market price of Rs. 120 per share and is
in the 50% tax bracket.
(a) Calculate Weighted Average Cost of Capital based on existing
capital structure by using E/p approach.
(b) Also calculate Revised Weighted Average Cost of Capital if
company raises an additional capital of Rs. 80,000 by term loan
@ 10%.
(B) Following figures are related to Pinacal Co. Sales are Rs. 20,00,000,
Variable Cost 40% of Sales, Fixed Cost Rs. 4,00,000, Interent 30,000.
Calculate Operating Leverage, Financial Leverage and Combined
Leverage.
Also state change in the above leverages if selling price is increased
by 15%.
[4372]-510 1 P.T.O.
Seat
No.
Q.2) What do you mean by Capital Structure ? Which are the various factors
which affects Capital Structure of the Company ?
Q.3) Enumerate and discuss importance of Financial Planning and steps involved
in Financial Planning.
Q.4) “The Equity Share is different from a Preference Share.” Illustrate in the
light of preferences available to Preference Shareholders.
Q.5) Discuss in detail : “Over-capitalisation is more fetal and dangerous even
though both are undesirable.”
Q.6) Write short notes : (Any Four)
(a) Trading on Equity
(b) Risk involved in Capital Budgeting
(c) Owned Capital and Borrowed Capital
(d) Types of Debentures
(e) Ploughing Back of Profits
(f) Cost of Equity Capital
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