B.B.A. (Semester VI) (CGPA) Examination Oct/Nov-2017
FINANCIAL MANAGEMENT II
Day Date: Wednesday, 15-11-2017 Max. Marks: 70
Time: 10.30 AM to 01.00 PM
Instructions: All questions are compulsory.
Figures to the right indicate full marks.
Use of Calculator is allowed.
Q.1 Choose the correct alternatives: 07
Sales Cost of Goods Sold
Net Profit Credit Sales
Gross Profit Operating Cost
is the market for short term securities.
Primary Secondary
Capital Money
refers to that portion of company's net earning that are
paid out to the equity shareholder.
Authorized Capital Dividend
Stock Split Paid up Value
companies are listed on BSE Sensex.
30 50
25 100
is/are non discounted technique of capital budgeting.
Profitability Index Net Present Value
A B None of these
On the basis of source of figures, rations are classified as
As Profit Loss ratio As Balance Sheet Ratio
As Combined Ratio All these ratio
The ratios which shows ability of firm to pay its current obligation.
Liquidity Ratio Turnover Ratio
Solvency Ratio Profitability Ratio
Q.1 Fill in the Blanks: 07
of capital budgeting focuses on early recovery
of investment.
is the internal source of finance.
Opening Stock Purchases Direct Expenses Closing Stock

Proprietors Fund Long Term External Capital
Total Present Value Initial Investment.
refers to the number of days outstanding on credit sale.
is the capital structure at the level of debt, equity
proportion, where the market value per share is maximum and the
cost of capital is minimum.
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SLR-CB-39
Q.2 Attempt Any Two) 14
Sai Ram Co. is planning to issue 14 Perpetual preference shares
face value of Rs. each. Flotation cost is estimated to be at 4%.
Compute cost of preference if they are issued at:
Face Value
10% Premium
discount
Also compute cost of preference for above all three situations with
dividend tax of 5%.
Forms of dividend payout
Features of Money Market
Q.3 Attempt (Any Two) 14
Difference between Primary Market Secondary Market.
Functions of Stock Exchange.
Factors affecting retained earnings.
Q.4 From the following particulars, draw up the Balance sheet of the company: 14
Current Ratio 2.5
Quick Ratio 1.5
Net Working Capital Rs. 30,000
Stock Turnover Ratio
(Cost of Sales/Closing Stock)
6 Times
Gross Profit Ratio 20%
Fixed Assets Turnover Ratio
(Cost of Sales)
2 Times
Debtors Turnover Ratio 2 Times
Fixed Assets to Shareholders' Net worth 0.8
Reserve Surplus to Capital 0.5
Long Term loans Rs. 15,000
OR
What is ratio analysis? Explain the advantages disadvantages of ratio
analysis.
Q.5 A company has an investment opportunity costing Rs. with the
following expected net cash flow, after Tax but before depreciation:
14
Year Net Cash Flows
1 7,000
2 7,000
3 7,000
4 7,000
5 7,000
6 8,000
7 10,000
8 15,000
9 10,000
10 4,000
Using 10% as the rate of discount find out the following:
Payback period
Net Present Value
Profitability Index
OR
What is capital structure? Explain the various internal, external and general
factors affecting Capital structure.