RAKSHPAL BAHADUR MANAGEMENT INSTITUTE, BAREILLY

(Affiliated to DAPJAK Technical University, Lucknow)

Class Test - I (2018-19)
Master of Business Administration - II Sem.
Financial Management & Corporate Finance (KMB 204)
Time : 01:30 Hrs. M.M. : 30 Marks

Section - A
Q1 Attempt all questions. (1 x 5 = 05) Marks
i. What is Primary & Secondary Market?
ii. Explain Preference Share Capital?
iii. What is the Scope of Financial Planning?
iv. What is the Concept of Time Value of Money?
v. What is Cost of Capital?

Section - B
Note: Attempt any Three questions. (3 x 5 = 15) Marks
i. The role of finance manager has undergone change in the changing environment,
offering multiple challenges .Discuss?
ii. Explain how the objective of Wealth Maximization is superior to Profit
Maximization.
iii. Explain the process of Capital Budgeting?
iv. What is Risk ? Explain various types of Risk?
v. What are the various methods of Capital Budgeting .Explain?

Section - C
Note: Attempt all questions.
(2 x 5 = 10) Marks
i. (Cost of irredeemable) A company has 9% irredeemable debt of Rs 5,00,000. The tax rate
is 35% .Determine the cost of capital(before tax as after tax) assuming the debt is issued:-
a) at Par
b) at discount of 5%
c) at premium of 10%
ii. (Cost of redeemable preference share capital) A company issue 1000,8% preference
shares of Rs 100 each at a discount of Rs 5 per share redeemable after 5 years at par.
Calculate cost of preference share capital.

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