Exam Details
| Subject | management of financial services | |
| Paper | ||
| Exam / Course | m.b.a. in a - financial management | |
| Department | ||
| Organization | acharya nagarjuna university-distance education | |
| Position | ||
| Exam Date | May, 2018 | |
| City, State | new delhi, new delhi |
Question Paper
Total No. of Questions 08] [Total No. of Pages 02
EXECUTIVE M.B.A. DEGREE EXAMINATION, MAY 2018
First and Second Years
B-FINANCIAL MANAGEMENT
Management of Financial Services
Time 3 Hours Maximum Marks :70
SECTION A
Answer any three of questions. x 5 15)
Q1) Broking
Mutual fund.
Hire purchase.
Credit rating.
Factoring.
Bill discounting.
SECTION B
Answer any three questions. x 15 45)
Q2) Explain the nature and scope of financial services.
Q3) What is a stock exchange? Explain the functions of stock exchanges.
Q4) Explain the role and functions of merchant banker.
Q5) Explain in detail about credit rating.
Q6) What is venture capital? Explain the advantages and disadvantages of venture
capital.
Q7) What are the differences between leasing and hire purchase?
SECTION C
(Compulsory) (10 Marks)
Q8) Case Study
A firm wishes to let on lease a machine costing Rs.1 lakh financed 75% through
debt and the balance through equity. Pre-tax explicit cost of debt is 18% and that
of equity is 15% per annum.
The firm has an effective tax rate of 45% and can claim 25% on WDV method.
The residual value of the machine is Rs.15,000 at the end of 5th year.
The lessor has to spend Rs.2000/- per year towards maintenance of machine and
administration. The lessee agrees to pay annual year-end rent of Rs.35,000 for 5
years; security deposit of Rs.1000/- and on-time management fee of Rs.1000/- at
the beginning of the lease. Is the above plan beneficial to the lessor?
EXECUTIVE M.B.A. DEGREE EXAMINATION, MAY 2018
First and Second Years
B-FINANCIAL MANAGEMENT
Management of Financial Services
Time 3 Hours Maximum Marks :70
SECTION A
Answer any three of questions. x 5 15)
Q1) Broking
Mutual fund.
Hire purchase.
Credit rating.
Factoring.
Bill discounting.
SECTION B
Answer any three questions. x 15 45)
Q2) Explain the nature and scope of financial services.
Q3) What is a stock exchange? Explain the functions of stock exchanges.
Q4) Explain the role and functions of merchant banker.
Q5) Explain in detail about credit rating.
Q6) What is venture capital? Explain the advantages and disadvantages of venture
capital.
Q7) What are the differences between leasing and hire purchase?
SECTION C
(Compulsory) (10 Marks)
Q8) Case Study
A firm wishes to let on lease a machine costing Rs.1 lakh financed 75% through
debt and the balance through equity. Pre-tax explicit cost of debt is 18% and that
of equity is 15% per annum.
The firm has an effective tax rate of 45% and can claim 25% on WDV method.
The residual value of the machine is Rs.15,000 at the end of 5th year.
The lessor has to spend Rs.2000/- per year towards maintenance of machine and
administration. The lessee agrees to pay annual year-end rent of Rs.35,000 for 5
years; security deposit of Rs.1000/- and on-time management fee of Rs.1000/- at
the beginning of the lease. Is the above plan beneficial to the lessor?