11.
Consider the following:
Annual requirement 50,000 units
Model question - 2079 Cost per order place Rs. 1000
Class: XII/Mgmt Business Finance (Sub code: Fin 4181) Carrying cost per unit Rs. 4.
Time: 3:00 Hrs FM: 75 Required: Economic order quantity:
Candidates are required to give their answers in their own words as far as Group – B (Short Answer Questions)
practicable. The figures in the margin indicate full marks. Attempt all questions: (8 x 5=40)
12. Briefly show the relationship of business finance with economics and
Group – A (Very short Answer Questions)
accounting.
Attempt all questions: (11 x1=11)
ब्यबसावयक वित्तशास्त्रसंग अथयशास्त्र र लेखा वबविको सम्बधिलाई संक्षेपमा दशायउनु होस्
1. What do you understand by the executive finance functions?
13. What do you mean by financial statements? What are their uses? Explain.
वित्त ब्यबस्थापन सम्बवधि ब्यबस्थापकीय काययहरु भन्नाले के बुझ्नु हुधछ ?
वित्तीय वििरणपत्रहरु भन्नाले के बुझ्नु हुधछ? वतनीहरुका उपयोवगता हरु के के हुन्?
2. Clarify the meaning of risk management role of financial manager.
ब्याख्या गनुयहोस् |
ljQ Joj:yfkssf] hf]lvd Joj:yfkg e'ldsfsf] अथय स्पष्ट पानुयहोस |
3. Write down any four limitations of ratio analysis. 14. Write the meaning of capital structure and briefly explain any three factors
affecting the capital structure of a business.
अनुपात विश्लेषणका कु नै चार सीमाहरु उल्लेख गनुयहोस् | पुुँजी संरचनाको अथय लेख्नुहोस र कु नै एउटा ब्यबसावयक प्रवतस्थानको पुुँजी संरचना लाई
4. Why a preferred stock is regarded as hybrid security? प्रभाब पने कु नै वतनओटा तत्ि हरुको संवक्षप्त ब्याख्या गनुयहोस् |
ककन अग्राविकार शेयरलाई बणयशंकर ककवसमको शेयरको रुपमा वलने गररधछ ? OR
5. Suppose a firm had net profit of Rs. 122,850 and firm paid out Rs. 65,000 Clarify the meaning of annual report. What are the major components to be
in cash dividend. What is the addition to retained earnings? included in an annual report to be prepared by a corporate business? Briefly
6. Birat pharmaceutical company has total equity Rs. 27,00,000, total assets explain.
of Rs. 35,00,000 and net profit after tax of Rs. 900,000. What is return on िार्षयक प्रवतबेदनको अथय स्पष्ट पानुयहोस् | कु नै एउटा कम्पवन स्तरको ब्यबसावयक
प्रवतस्ठानले तयार पाने िार्षयक प्रवतबेदनमा समाबेश गररने वबषय बस्तुहरु के के हुन्?
equity of the company?
संवक्षप्त ब्याख्या गनुयहोस् |
7. The following relationship exists for a manufacturing company. Each unit
15. Consider the following financial information for Balen company:
of output is sold for Rs. 150. The fixed costs are Rs. 760,000 and variable
Sales for this year are Rs. 50,000 and cost of goods sold is 60% of sales.
costs are Rs. 50 per unit. What is contribution margin per unit?
Item Beginning Ending
8. XYZ company has following information:
Inventory 5000 7000
Dividend paid Rs. 20 Account receivable 1600 2400
Constant growth rate 6% Account payable 2700 4800
Required rate of return 12% Calculate operating cycle, cash conversion cycle and working capital.
Required: What is price of common stock today?
16. Using the following data, complete the balance sheet given below:
9. What is the days sales outstanding for a firm whose sales are Rs. 28,80,000
Debt ratio : 50%
per year and account receivable are Rs. 312,000. Quick ratio : 0.8
10. Write the meaning of cash management. Total assets turnover : 1.5 times
Days sales outstanding
नगद ब्यबस्थापनको अथय लेख्नह ु ोस _ : 36 days
Gross profit margin : 25%
Sales / Inventory : 5 times Group – C (Long Answer Questions)
Attempt all questions: (3 x 8=24)
Balance sheet 20. Clarify the meaning of working capital and describe the different factors
Notes payable ……… Cash …… affecting the amount of working capital to be maintained by a business.
Long term debt 40,000 Account receivable …… काययशील पुुँजीको अथय स्पष्ट पानुयहोस र एउटा ब्यबसावयक प्रवतष्ठान ले व्यिस्था गनुय पने
Common stock ……… Inventories ……. काययशील पुुँजीको मात्रालाई प्रभाब पने विवभन्न कारण हरुको बारे मा ब्याख्या गनुयहोस् |
Retained earning 65,000 Fixed assets ……. OR
Total liabilities and equity ……. Total assets 200,000 What do you mean by long term debt capital? What are the different
17. A firm has sales of Rs. 750,000 in 2078. The cost of goods sold is Rs. advantages and disadvantages of long term debt capital? Explain.
250,000, general and administrative expenses are Rs. 75,000, interest दीर्य कालीन ऋण पुुँजी भन्नाले के बुझ्नु हुधछ ? दीर्य कालीन ऋण पुुँजीका विवभन्न फाइदा
expenses are Rs. 45,000 and depreciation is Rs. 10,000. The firm also paid तथा बे फाइदा तथा हरु के के हुन्? ब्याख्या गनुयहोस्|
a preferred stock dividend of Rs. 12,000 and the corporate tax rate is 40%. 21. Compute the value of following bond:
a. What are the earnings before interest and taxes of the firm? a) A perpetual bond with Rs 1000, 10% coupon rate and 12.5% required
b. What is the net income of the firm? rate of return.
c. Suppose the firm has 15,000 shares of common stock outstanding, what are b) A zero coupon bond with Rs. 1000 par value, 10 years maturity and
the earnings per share (EPS)? investors required rate of return of 12%.
18. A company is planning to market its new product in Kathmandu. The
c) A bond with 7.5% coupon rate, 8 years maturity Rs 1000 par value and
marketing department has suggested that the company could sell a unit of
required rate of return of 12%.
product at Rs. 50.0. It is estimated that the annual fixed operating costs will
d) A bond with 9% coupon rate, 6 years maturity, Rs 1000 par value and
be Rs. 500,000 and the variable cost be Rs. 30.0 per unit.
required rate of return of 10.5%.
Required: 22. A firm is planning to run stone crushing factory. It has to decide whether
a) Operating break-even point (both in units and in rupees).
b) What should be the sales volume to achieve an after profit of it should purchase semi-automatic machine or fully automatic machine.
Rs. 100,000? Assuming 20 % corporate tax rate? Semi-automatic machine costs Rs. 30,00,000 and fully automatic machine
19. A Company borrowed Rs 1.5 millions from NCC bank. The loan was made costs Rs. 32,00,000. Semi-automatic machine will generate the annual
at a simple annual interest rate of 9% a year for three months. A 20% cash flows of Rs. 700,000. Automatic machine will generate Rs. 25,000
compensating balance requirement raised the effective interest rate. more annual net cash flows than that of semi-automatic machine. Life of
a. The approximate interest rate on the loan was 11.25%. What is the true both the machines will be 7 years. Cost of capital applicable to stone
effective rate? crushing factory will be 10 percent.
b. What would be the effective cost of the loan if the note required a) Calculate the payback period and net present value of both the
discount interest? machines.
c. What would be the approximate annual interest rate in the loan if NCC b) If these machines are mutually exclusive, which machine firm
bank required company to repay the loan and interest in three equal should purchase? Why?
monthly instalment?
"The End"