Also Check:-
Attempt all the questions.
very short answer questions 11 x 1= 11
2. What do you mean by balance sheet?
3. Write two ratios to calculate liquidity.
4. List any two advantages of long-term debts.
5. Mention any two disadvantages of preferred stock.
6. What is optimal capital structure?
7. Write the formula for the valuation of redeemable bonds.
8. List two important investment decisions.
9. Write any two benefits of a stock dividend to shareholders.
10. Write down the points of the dividend payment procedure.
11. Write the meaning of a direct quotation of the exchange rate with an example.
Group 'B'
Short answer question 8 x 5 = 40
12. Clarify the relationship of finance with accounting and economics.
13. Describe the need for a financial statement.
14. Find out the annual percentage cost and effective annual rate when the credit is 5/10 net 20
15. A company provides the following information:
Fixed cost
Variable cost-per-unit
Selling price per unit
Required: 2.5 + 2.5
Break-even point in unit and in Rs.
16. A company has annual sales of Rs 6,00,000 with an inventory turnover ratio of 8 times. It has a receivable collection period of 25 days and a payables deferral period of 16 days. Assume 360 days in a year.
Required: 2 + 3
Inventory conversion period
Cash conversion cycle.
17. State the types of investment proposals.
18. Write in brief the different types of dividend payment schemes.
19. Write the meaning of multinational corporations with domestic financial management. 2 + 3
OR
A company representative going to Japan. It needs $8,000 for the tour. How much will cost if the exchange rate of Nepal Rastra Bank for $1=Rs 123.22?
Group 'C'
Long answer questions 3 x 8 = 24
20. The following information of a company are given as:
Current Ratio 2 times
Current Assets Ra.4,00,000
Stock Rs50,000
Fixed Assets Rs5,00,000
Sales Rs8,00,000
Net Profit Rs.1,00,000
Long Term Debt Rs.2,00,000
Required : 1 + 1 + 1 + 1 + 1 + 2 + 1
Current liabilities
Liquid ratio
Net profit ratio
Inventory turnover ratio
Return on Assets
Return on common equity
Debt equity ratio
21. Computer the value of the following bond: 4
a) Maturity period 8yeras.
Par value Rs.1,000
Interest rate 0%(zero-coupon bond)
Rate of return 10%
b) A company issued Rs.500 par 7% coupon perpetual bond. If the required rate of return is 8%, what should be the value of the bond? 4
OR
Write the meaning of bond and explain its features.
22. A company provides the following cash flow for an alternative project.
| Year | (Project)A | (Project)B |
|---|---|---|
| 0 1 2 3 4 5 | (2,00,000) 80,000 80,000 80,000 80,000 80,000 | (2,00,000) 80,000 85,000 75,000 80,000 82,000 |
Additional information :
The minimum required rate of return is 12%
Required: 2 + 4 + 2
Net present value
Which project is suitable? and why?
