PEF Post Graduate College, Peshawar

Mid Term Exam, 2020

BBA (Hons), 7th Semester

Subject: Financial Management Marks: 75

Time: 3 hrs

Note: Attempt any FIVE (05) questions from the rest of the following and each carries 15
marks.

Q.1 Define Capital Budgeting and discuss its Instruments?

Q.2 If the Initial cash out flow is Rs. 50,000 and the cash flows are 15,000, 12,000, 10,000,
7,000 and 5,000 respectively for five (05) from the investment project. The discount rate
is 5%.

Requirements:

a. Calculate Net Present Value?

b. Profitability Index?

Q.3 Define Working Capital and discuss its approaches?

Q.4 What do you mean by the term dollar today is worth more than dollar tomorrow? Explain
with example.

Q.5 a. Define Amortization?

b. If a person deposits Rs.10, 000 in saving bank, where the interest rate is 5% for
three years. Calculate the value at the end of last year?

Q.6 Define Dividend Policy and discuss its approaches?

Q.7 Discuss factors that affect Dividend Policy?

Q.8 Define the following:

a. Spontaneous Financing

b. Commercial Paper

c. Underwriting Syndicate

d. Draft

e. Perpetuity