ROTO. seecessecteeseecevieeet Subject Code—8159 B.B.A. (Second Year) EXAMINATION (Main/Re-appear Batch 2009 Onwards) BBA-205 FINANCIAL MANAGEMENT Time : 3 Hours Maximum Marks : 70 Section A Note : Attempt any Seven questions. 7x5=35 1. Describe the three broad areas of financial decision making and the salient features of the modern approaches to financial management. 2. What procedure would you adopt to study the liquidity of a business firm ? 3. What are Investing Activities ? Give example. (2-208-0514) J-8159 ; P-T.O.6. What are the major causes of Business Failures ? What is the importance of ratio analysis ? Briefly discuss the importance of the following accounting ratios : (a) Liquidity ratio (b) Debt-equity ratio. Why is it important to evaluate capital budgeting projects on the basis of after tax cash incremental flows ? Why not use accounting data instead of cash flow ? What is the weighted average cost of capital ? Examine the rationale behind the use of weighted average cost of capital. , Define economic order quantity (EOQ). How can it be computed ? What are the limitations of EOQ model ? T-B159 29, Distinguish between the following : (a) Gross Working Capital and Net Working Capital (b) Production and Operating Cycle. 10. What are the principal motives for holding cash ? Section B | Note : Attempt all the questions. IL. ‘The capital budgeting technique of evaluating a merger proposition is the most appropriate.’ Elucidate the statement. 12 Or How would you estimate the working capital needs of a organization ? 12. What are the main. attributes of debentures/ bonds ? What are their merits and demerits ? 12 (2-208-0514) J-8159 3 P.T.O.Or Define Fund Flow Statement. How is jit prepared ? 13. Define Capital Structure. What is an appropriate capital structure ? What is a flexible capital structure ? ; : aT Or What do you understand by Dividend Policy ? What factors determine Dividend Pay-out Ratio ? Z J-8159. 4 620