B.M. DEGREE EXAMINATION, NOVEMBER/DECEMBER 2017.
Fifth Semester
Paper II FINANCIAL MANAGEMENT
2 90452
Time 3 Hours Max. Marks 60
PART — A
Answer any TWO of the following. 6 12 Marks)
1. State the functions of finance.
2. What is Internal rate of return?
3. What are different kinds of working capital?
4. What do you understand by capital budgeting?
PART — B
Answer any FOUR of the following. 12 48 Marks)
5. Discuss the financial decisions and the role of financial manager in analysing such
decisions.
6. A company is considering a project whose cost price is Rs. 10,00,000. The company
has a required rate of return of 12%. The expected cash inflows for 6 years life are
the following scrap value 0.
Year Cash inflows
1 20,00,000
2 20,00,000
3 20,00,000
4 10,00,000
5 10,00,000
6 10,00,000
Is the project viable by IRR technique? Evaluate the project.
7. Explain the investment evaluation criteria in detail.

8. The following data are obtained from the records of a company.
First Year Second Year
Sales 80,000 90,000
Profit 10,000 14,000
Calculate
P/V ratio.
Break even point.
Sales required to earn a profit of Rs. 19,000.
9. What are the various techniques of financial analysis?
10. Explain the procedure in estimating working capital requirement.
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