4 (Sem–5/OTBE) FLM ( 2 )

2020
(iii) Time value of money
( Held in 2021 ) ≥Ââ‡π Œ≥⁄ ≥Ë∫∏
FINANCIAL MANAGEMENT (iv) None of the above
*öππ &i°‡* >“⁄
Paper : 5.3
(b) Over-capitalization may be due to
Full Marks : 56
"[ã≥Ë∫ã>„A°πo Γ‡Ø‡π A°‡πo “í∫
Time : 3 hours
(i) heavy promotion expenses
The figures in the margin indicate full marks
"[ãA° ö¯‡π[¥±A° §∏⁄
for the questions

Answer either in English or in Assamese (ii) inadequate provision for deprecia-

tion

GROUP—A "öô¢‡ú° "ؤ°⁄ Œ}N¯“ [Œá˝°‡îz

( Marks : 28 ) (iii) distribution of more dividends

ôÏ=€° ö[π≥‡oπ ∫Æ°∏‡}≈ [§t°πo
1. Select the most appropriate answer from the
choices given against each : 1×4=4 (iv) All of the above

[>Ï≥ó‡v°˚° [§A°øŒ≥Ë“π öπ‡ «°á˝° l°¸v°πÏi°‡ §‡[· l°¸[∫*؇ : *öππ ÎK‡Ïi°“¸ÏA°“¸i°‡

(a) What is ignored in profit maximization? (c) Capital budgeting is a part of

∫‡Æ° Œ§¢‡[ãA°πÏo A°‡A° P°πÁ°Œ ö¯É‡> >A°Ïπ? ≥Ë∫ã>„ §‡Ï\i°π &i°‡ "}≈ “í∫
(i) Wealth (i) working capital management
Œ¥öÉ A°‡ô¢A°π„ ≥Ë∫ã> ö[πW°‡∫>‡
(ii) Net value (ii) investment decision
ö¯Aı°t° ≥Ë∫∏ [§[>Ï⁄‡K [Œá˝°‡îz

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(iii) capital structure 3. Answer any three of the following questions

≥Ë∫ã> KÚ‡=[> (each within 150 words) : 6×3=18
(iv) dividend decision t°∫t° [É⁄‡ ö¯≈óŒ≥Ë“π [ô ÎA°‡Ï>‡ [t¡[>i¡à¹ l°¸v°π [É⁄‡ (ö¯[t°Ïi°‡
∫Æ°∏‡}≈ [§[∫A°πo [Œá˝°‡îz 150 ≈¶π [Æ°t°πt°) :
(d) When profitability index exceeds one, (a) Define financial management and state
the proposal for investment is accepted. its limitations.
∫‡Æ° "\¢>π ŒËW°A° Îô[t°⁄‡ &A°π *öπ “⁄, Ît°[t°⁄‡ [§v°„⁄ ö[πW°‡∫>‡π Œ}`°‡ [É⁄‡ "‡πÁ° “¸⁄‡π
[§[>Ï⁄‡K ö¯—z‡Ø>‡ N¯“o A°π‡ “⁄°˙ Œ„≥‡§á˝°t°‡Ï§‡π l°¸Ï¿J A°π‡°˙
(i) True (b) Discuss the determinants of working
«°á˝° capital of a firm.
(ii) False ö¯[t°À°‡> &i°‡π A°‡ô¢A°π„ ≥Ë∫ã>π ö[π≥‡o [>㢇πoA°‡π„
"«°á˝° l°¸ö‡É‡>Œ≥Ë“ "‡Ï∫‡W°>‡ A°π‡°˙

2. Answer the following questions (each within (c) Explain the profitability index method of
30 words) : 2×3=6 capital budgeting.

t°∫t° [É⁄‡ ö¯≈óÏA°“¸i°‡π l°¸v°π [É⁄‡ (ö¯[t°Ïi°‡ 30 ≈¶π ≥Ë∫ã> §‡Ï\i°π profitability index öá˝°[t°π
[Æ°t°πt°) : §o¢>‡ [É⁄‡°˙

(a) Define ‘financial leverage’. (d) Explain the differences between

operating leverage and financial
ë[§v°„⁄ [∫Æ°‡Ïπ\íπ Œ}`°‡ [É⁄‡°˙
leverage.
(b) What is net present value? "ö‡Ïπ[i°} [∫Æ°‡Ïπ\ "‡πÁ° [§v°„⁄ [∫Æ°‡Ïπ\π
ö¯Aı°t° §t¢°≥‡> ≥Ë∫∏ [A°? ö‡=¢A°∏Œ≥Ë“ §o¢>‡ A°π‡°˙
(c) State two factors influencing capital (e) Write a note on optimum working
structure. capital.
≥Ë∫ã> KÚ‡=[>A° ö¯Æ°‡Ø‡[fit° A°π‡ ÉÂi°‡ l°¸ö‡É‡> l°¸Ï¿J ö¯A°‡≥∏ A°‡ô¢A°π„ ≥Ë∫ã>π *öπt° &i°‡ Îi°‡A°‡ [∫J‡°˙
A°π‡°˙
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GROUP—B [t°[>i°‡ [§[>Ï⁄‡K ö¯A°øπ t°=∏Œ≥Ë“π öπ‡ 10% ŒÂt°Œ“

( Marks : 28 )
≥Âk° §t¢°≥‡> ≥Ë∫∏ [>o¢⁄ A°[π ÎA°‡>Ïi°‡ ö¯A°ø l°¸öôÂv°˚°,
[§W°‡π A°π‡°˙
4. Answer any four of the following questions 10% §‡j°‡ ã[π 1 i°A°‡π §t¢°≥‡> ≥Ë∫∏ ô=‡y˚°Ï≥ ö¯=≥
(each within 300 words wherever §·πt° “í§ 0·9516 "‡πÁ° [át°„⁄ §·πt° “í§
applicable) : 7×4=28 0·8611.
t°∫t° [É⁄‡ ö¯≈óŒ≥Ë“π [ô ÎA°‡Ï>‡ W¡à[¹i¡à¹ l°¸v°π [É⁄‡ (ö¯[t°Ïi°‡
300 ≈¶π [Æ°t°πt° ôít° ö¯Ïô‡\∏) : (c) Discuss the modern methods of capital
budgeting.
(a) State the causes and effects of over-
capitalization.
≥Ë∫ã>„ §‡Ï\i°π "‡ãÂ[>A° öá˝°[t°Œ≥Ë“ "‡Ï∫‡W°>‡ A°π‡°˙
"[ã≥Ë∫ã>„A°πoπ A°‡πo "‡πÁ° ö¯Æ°‡ØŒ≥Ë“ l°¸Ï¿J A°π‡°˙ (d) Explain the factors determining
(b) Following are the particulars of three dividend policy.
investment projects : ∫Æ°∏‡}≈ "Ú‡W°[> [>㢇πoA°‡π„ l°¸ö‡É‡>Œ≥Ë“ §o¢>‡ A°π‡°˙
[t°[>i°‡ [§[>Ï⁄‡K ö¯A°øπ t°=∏Œ≥Ë“ t°∫t° [É⁄‡ “í∫ :
(e) What are the different forms of
Project Initial Investment Cash inflow (in R) dividend? Explain.
šøA¡¿ šøà¹[´±A¡ [¤[>ìÚàK ³èº‹>¹ šø‾àÒ (i°A°‡t°)
∫Æ°∏‡}≈π [§[Æ°ƒ πÍ°öŒ≥Ë“ [A° [A°? §o¢>‡ A°π‡°˙
(in R/i°A°‡t°) 1st year 2nd year
šø=³ ¤È¢ [‡t¡ãÚ ¤È¢
A 3,000 6,000 — (f) Explain the functions of financial
B 3,000 2,000 4,000 management.
C 3,000 3,000 3,300
[§v°„⁄ ö[πW°‡∫>‡π A°‡ô¢Œ≥Ë“ §o¢>‡ A°π‡°˙
Calculate the net present value of each
project with 10% interest and find out
HHH
which project is the best.
The present values of R 1 received
during 1st and 2nd year are 0·9516 and
0·8611 respectively at 10% discount.

1-21/805 ( Turn Over ) 1-21—PDF/805 4 (Sem–5/OTBE) FLM