Code No. D-14030 FACULTY OF COMMERCE B.Com (CBCS) V Semester Examination, March 2022 (common Paper for Genorall Computer Applications! Advertising! Foreign Trade! and Tax Procedure! Honours Courses) Subject: Financial Management Paper Code-DSC- 503 Time: 3 Hours Max. Marks: 80 PART-A Note: Answer any five questions. (6x4 = 20 Marks) 4. Define Financial Management. 2. Characteristics of Equity Shares. 3. What is Financial Plan? Oy 4, Define Capitalisation: 5, What do you mean by’Over Capitalisation? 6. X Lid. issues Rs.50,000 8% debentures at par. mibadyate applicable to the company is 50%. Compuite the cost of debt capital. seeetiaves of a company are selling at Rs.4Q per sfiare and it had a dividend of Red per share last year. The investor's marketexpects a growth rate of 5 per cent per year. Compute the company's equity 2dst offpapital. 8. X Lid. Is expecting an annual EBIT of The company has Rs.4 lakhs in 40% debentures. The cost of equity capitalization rate is 12.5%. You are Tosti to calculate the total value dFthe firm according to the Net Income Approah. O) ART -B Note: Answer any five qi (8x12 = 60 Marks) 9 Whatare the moiohe3ip ‘bilities of a finance manager in a modem industrial organization? x 0 40 Briefly expigin © relationship between Financial Management and other Managément Breas. "1 wrk arophe main sources of finance available to industries for meeting short-term as Wolke long-term financial requirements? Discuss. 42 What do you mean by financial planning? What are its characteristics? 419 What do you understand by the term Capitalisation? Explain various theories of capitalisation. 14 Both Over Capitalisation and Under Capitalisation are harmful to the financial interests of a company. 45 What is Cost of Capital? Explain the significance of Cost of Capital.Code No. D-14030 46 Accompany has on its books the following amounts and specie costs of each type “Type of Capital | Book Value (Rs. | Market Value (Rs) | Specific Costs (%) Debt 4,00,000 3,80,000 5 Preference Cap. | 1,00,000 110,000 8 Equity Cap. 6,00,000, 13 Retained Earnings | 2,00,000 caaom) 9 | of capital. Dotermine the weighted average cost of capital using Book v weights and Market value weight. 5 47 What is meant by Capital Structure? What are the maj ents of capital structure? 48 ()) Acompany expects a net income of Rs.80, 000, Qy 2,00,000, 8% Dabonkares. The equity capitalization rate of thgscompany is 40% Calculate ra value ofthe firm and overall capitalisatag rafe/according to the Net Income ‘Approach (ignoring income-tax). (iy I the debenture debtis increased tgReg00.000, what shall be the value of the firm and the overall capitalisation rate?