Gauhati University Fundamental of Financial Management Question paper 2022
Here in this page you will get to see Gauhati University Fundamental of Financial Management Question Paper'2022 B.com 5th semester CBCS Pettern. Held in December 2022.
Gauhati University Fundamentals of Financial Management Question paper'2022 B.com 5th semester
GU Fundamental of Financial Management Question Paper 2022 CBCS Pettern
2022
COMMERCE
(Honours)
Paper COM-HC-5026
(Fundamentals of Financial Management)
Full Marks: 70
Time: Three hours
The figures in the margin indicate full marks for the questions.
Answer any ten of the following questions:
(A) Choose the correct option of the following (any five) 1x5=5
(a) Long term investment decision is also known as
(i) working capital
(i) dividend decision
(ii) capital budgeting
(iv) None of the above
(b) The overall cost of capital is also known as
(i) marginal cost of capital
(ii) variable cost of capital
(iii) weighted average cost of capital
(iv) specific cost of capital
(c) Capital structure represents
(i) ratio between different forms of capital
(ii) all liabilities
(iii) all assets
(iv) assets and liabilities
(d) The capitalization of profit is termed as
(i) cash dividend
(ii) bond dividend
(iii) stock dividend
(iv) property dividend
(e) Key financial function of a firm includes the following, except
(i) investment decision
(ii) dividend decision.
(iii) financing decision
(iv) make or buy decision.
(f) According to which model dividend policy has no effect on the market price of the shares and value of the firm ?
(i) Walter's model
(ii) M M model
(iii) Gordon's model
(iv) None of the above
(g) Capital budgeting deals with
(i) cash Management
(ii) management of working capital
(iii) managing fixed assets
(iv) None of the above
(h) Which is not payback method?
(i) Pay-off method
(ii) Payout method
(iii) Recoupment period method
(iv) None of the above
(i) When should a project be accepted under profitability index (PI) ?
(i) When PI > 1.0
(ii) When Pl< 1.0
(iii) When PI-0
(iv) None of the above
Gauhati University Fundamentals of Financial Management Question paper'2022 B.com 5th sem(B) Write whether the following statements are True or False: (any five) 1×5=5
(a) Cost of retained earnings is less than cost of equity.
(b) Stable dividend does not mean a fixed dividend payout ratio.
(c) Every financial decision should be based on cost-benefit analysis.
(d) Working capital is also known as excess of current assets over current liabilities.
(e) Profitability index is the relationship between present value of cash inflows and the present value of cash outflows.
(f) The cost of capital is the minimum rate of return expected by its investors.
(g) Stock dividend affects liquidity position of the company.
(h) Receivables constitute a significant portion of the fixed assets.
(i) Capital structure is the mix of preference and equity share capital.
Gauhati University Fundamentals of Financial Management Question paper'2022 B.com 5th sem2. Answer any five of the following questions in about 50 words each: 2×5-10
(a) What is financing decision ?
(b) What is permanent working capital ?
(c) What do you mean by a capital structure?
(d) What is bond dividend ?
(e) Write two importances of capital budgeting.
(f) What do you mean by cash management?
(g) What is payback period ?
(h) Define cost of capital.
(i) What do you mean by accounting rate of return?
(j) What are the objectives of receivable management ?
Gauhati University Fundamentals of Financial Management Question paper'2022 B.com 5th sem3. Answer any four of the following questions in about 150 words each: 5x4=20
(a) Briefly explain the sources of long-term financing.
(b) Write a brief note on valuation of securities.
(c) Discuss five factors determining working capital requirements.
(d) Write the different types of dividend policies.
(e) What is IRR method of capital budgeting? Mention two advantages and two limitations of this method.
(f) Why is wealth maximization objective considered as superior to profit maximization objective? Write five reasons.
(g) State the limitation of financial management.
(h) Explain the significance of cost of capital.
4. Answer any three of the following questions in about 600 words each: 10×3=30
Gauhati University Fundamentals of Financial Management Question paper'2022 B.com 5th sem(a) What is capital asset pricing model? Discuss the various assumptions and elements of CAPM. 2+(4+4)=10
(b) Discuss the role and responsibilities of a finance manager in modern business organization.
(c) Sunrise Enterprise is considering two mutually exclusive projects with the following cash flow stream:
If the cost of capital to the firm is 12%, rank the two projects in terms of -
(i) payback period, and
(i) net present value
(At 12% the present value of Re. I received at the end of the 1st, 2nd, 3rd, and 4th years are 0.892, 0.797, 0.711, and 0.635 respectively) 5+5= 10
(d) Radha & Company issues 10,000 preference shares at 10% and face value of the share is Rs. 100 each. The cost of issue is Rs. 2 per share. Calculate the cost of preference share capital if issued -
(i) at a premium of 10%, and
(ii) at a discount of 5%. 5+5=10
(e) What is dividend? Discuss the important factors which determine. dividend policy of a company. 2+8-10
(f) Discuss the disadvantages of excessive working capital and dangers of inadequate working capital encountered by a firm. 5+5=10
(g) Explain the relationship between operating leverage and financial leverage.
(h) Discuss the modern method of capital budgeting.
Gauhati University Fundamentals of Financial Management Question paper'2022 B.com 5th sem**********
Also Read:
Fundamentals of Financial Management Unit Wise Notes 😄