. OA
Roll No. .. ‘ >
57032
B.B.A. 4th Semester
| (N.S.) 2011-2014
Examination-May, 2015
- Financial Management
Paper-Bba-402
Time : 3 hours Max. Marks : 80
Before answering the questions, candidates
should ensure that they have been supplied
the correct and complete question paper. No
complaint in this regard will be entertained
after the examination.
Note : Attempt five questions in all. Section-A
is compulsory and attempt other four
more questions selecting one question
from each unit from Section-B.
Section-A
1. (a) List the finance functions.
(b) What is profit maximization approach ?
67032-4000-(P-4)(Q-0)(15) (1) { Turn Over”
(c) Name traditional methods of capital
budgeting. uf
(d)_ Define financial leverage.
(e) What is the proposition of traditional
approach of capital structure ?
() . What are the components of cost &
, capital ?
(g) Define dividend decision.
‘(h) Give two ~ objectives of cash
management. [2x8=16]
Section-B
Unit-I .
‘Financial management is more than
procurement of funds’. Explain:. this
statement and scope of financial
management. [16]
Write notes on the following :
: ,
(a) Functions of finance manager {8]
87032-4000-(P-4)(Q-0)(18) (2)(b) Profit maximization v/s wealth
maximization. {8]
Unit-II
What is capital budgeting decision ?
Critically evaluate the NPV method of capital
investment decision. [16]
Define cost of capital. Explain its relevance
in decision making. How is weighted average
cost of capital determined ? [16]
Unit-IIl
Distinguish between operating and financial
leverage. Discuss EBIT-EPS analysis with
example, [16]
Compare and contrast NI approach and NOI
approach as to capital structure. [16]
Unit-IV
What do you mean by dividend policy of a
company ? Discuss Watler’s dividend model
with imaginary figure. . [16]
7032-4000-(P-4)(Q-9)(15) , (3) { Turn Over9. ABC Ltd. manufactures a special product ‘Z’
and provides the following information :
Demand of 2’ varies from 500° units to 1500
units per month
Semi-annual carrying cost 6%
Raw material required per unit of finished
product 2 kg.
Ordering cost per order Rs. 90
Purchase price of input unit Rs. 25 per kg.
Calculate EOQ. [16]
87032-4000-(P-4)(Q-9)(18) " (4)