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    Thapar Institute of Engineering & Technology, Patiala (Deemed University)

    Uploaded by

    Rakesh Sharma
    This document is the mid-semester examination for the course Introduction to Corporate Finance at Thapar Institute of Engineering & Technology. It contains 7 questions assessing students' understanding of corporate finance concepts. The questions cover topics such as finance function organization, financial management objectives, time value of money calculations, financial statement analysis including a cash flow statement, income statement preparation and ratio analysis.

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    Thapar Institute of Engineering & Technology, Patiala (Deemed University)

    Uploaded by

    Rakesh Sharma
    97 views2 pages
    This document is the mid-semester examination for the course Introduction to Corporate Finance at Thapar Institute of Engineering & Technology. It contains 7 questions assessing students' understanding of corporate finance concepts. The questions cover topics such as finance function organization, financial management objectives, time value of money calculations, financial statement analysis including a cash flow statement, income statement preparation and ratio analysis.

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    final _mst_UHU008_SEP2019

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    This document is the mid-semester examination for the course Introduction to Corporate Finance at Thapar Institute of Engineering & Technology. It contains 7 questions assessing students' understanding of corporate finance concepts. The questions cover topics such as finance function organization, financial management objectives, time value of money calculations, financial statement analysis including a cash flow statement, income statement preparation and ratio analysis.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    97 views2 pages

    Thapar Institute of Engineering & Technology, Patiala (Deemed University)

    Uploaded by

    Rakesh Sharma
    This document is the mid-semester examination for the course Introduction to Corporate Finance at Thapar Institute of Engineering & Technology. It contains 7 questions assessing students' understanding of corporate finance concepts. The questions cover topics such as finance function organization, financial management objectives, time value of money calculations, financial statement analysis including a cash flow statement, income statement preparation and ratio analysis.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    of 2

    Roll Number:__________________________

    Thapar Institute of Engineering & Technology , Patiala


    (Deemed University)
    School of Humanities & Social Sciences
    Mid Semester Examination
    BE (Third and fourth year ) Course Code: UHU008
    Course Name: Introduction to Corporate
    Finance
    September 16, 2019 Saturday, 8.00 – 10.00 Hrs
    Time: 2 Hours, M. Marks: 30 Name of Faculty: RAV, RKS, SCB, ANS and
    SC

    Instructions: Attempt all questions. Assume


    missing value (if any)

    Question Description Marks


    Q.1 How should the finance functions of an enterprise be organized? What are the functions (3)
    performed by the finance officer?
    Q.2 “ There is controversy regarding the objective of financial management” Discuss what should (3)
    be the exact objective of Finacial management . Also state reasons to support your decision.
    Q.3 How much would you be willing to pay today for an investment that would return (2)
    Rs. 8000 each year at the end of each of the next 5 years? Assume a discount rate
    of 10 percent.
    Q.4 Indian People Bank pays 15% interest per annum which is compounded yearly basis. If Rs. (2)
    5000 is deposited initially, how much shall it grow at the end of 5 years?

    Q.5 The following is the balancesheet of Alloyon India Ltd. (8)


    Liabilities 01-04- 31-03- Assets 01-04- 31-03-
    2018 2019 2018 2019
    (Rs) (Rs) (Rs) (Rs)
    Equity Share capital 14,80,000 14,90,000 Building 7,50,000 9,50,000

    Profit and Loss 2,50,000 4,00,000 Land 2,00,000 4,00,000


    Account
    Long Tem Debt 3,00,000 2,50,000 Machnary 8,00,000 8,60,000
    Creditors 3,60,000 4,10,000 Stock 2,50,000 2,20,000
    Bills Payble   3,00,000 Debtors 3,50,000 3,84,000
          Cash 40,000 36,000
               
    Total 23,90,000 28,50,000   23,90,000 28,50,000
    Depreciation on Machinary Rs. 80,000
    Depreciation on Building Rs. 75,000
    Dividend Paid Rs. 1, 50,000
    You are required to prepare cash flow statememt and comment on the operating, investing and
    financial health of company.
    Q.6 You are required to prepare income statement by using the following information of (4)
    Jaguar India Ltd . Also Caluclate the earning per share.
    Sales Rs. 30,00,000
    Cost of goods Sold Rs. 12,00,000
    Office expenses Rs.5,00,000
    Sales & Distribution Expenses Rs. 4,00,000
    Interest @ 10% on Debentures of Rs. Rs. 1,50,000
    15,00,000
    Tax Rate 40%
    Outstanding number of Equity Shares 200,000
    Q.7 Following information are taken from the books of Orbit Co.ltd (8)
    Cash in hand Rs.1,50,000
    Sundry debtors Rs. 2,40,000
    Stock Rs. 300,000
    Cash at bank Rs. 2,00,000
    Current Liabilities Rs. 600,000
    Gross profit Rs. 7,50,000
    Office and Admistration Rs. 100,000
    expenses
    Selling Expenses Rs. 1,50,000
    Interest on Long Term Debt Rs. 1,50,000
    Tax on profit 50%
    Net Sales Rs. 10,00,000
    10% Long Term Debt Rs.15,00,000
    Equity Capital (250,000 shares Rs. 25,00,000
    @ Rs. 10 each)
    Reserves & surpluses Rs. 5,00,000
    You are required to calculate following ratios and comment on profitability, liquidity
    and long term financial health of company.
    a) Current ratio
    b) Liquid Ratio
    c) Gross Profit ratio
    d) Net Profit Ratio
    e) Returns on Common Equity
    f) Debt Equity Ratio
    g) Stock Turnover Ratio
    h) Debtor Turnover Ratio

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