Total Piges-7

COMM-x
UGSth Semester Examination, 2022-23 (R)
Subject: cOMMERCE

(FFM)
Paper-C-XII
Full Marks 80

Time:3 hours

Answer from all the Parts as per direction

The figures in the right-hand margin indicate marks

Candidates are required to give their answers in their

own words as far as practicable

PART-I
1x 12
1. Answer all questions
maximisation?
(a) What is ignored in profit
confines finance
(6) Traditional approach
function only to. offunds.

(Turn Over)
 2)

() Multiple compounding period means

(d) The present value of money to be received

on future date will be.

(e) is the same as self financing.

) According to traditional approach, cost of
capital is affected by.

(g) Profitability index is also known as.

ratio.

(h) A project has investment of 1,20,000 and

yields annual cash inflow of 712,000 for
12 years. Find out pay back period.

()Premium received in cash is a source of

bonus issue. (State True/False)

The rate of return on investments. -with

the shortage of working
capital.
(k) Zero working capital approach helps in better
management of .

( The hedging approach implies low

profit and cost, high

COMM-c-XII
(Continued)
 3

PART-II
2. Answer any eight questions of the following
within two or three sentences each 2x 8

(a) Explain the term net working capital.

(6) State the concept of risk-return trade-off.

(c) What is dividend pay out ratio?

(d) Define the term Bonus Issue.

(e) Note down the two objectives of NPV

method.

What is Composite Cost ?

(g) Explain the term arbitrage process.

(h) Define the term factoring.
() Define the term risk.

What do you mean by

tion ?
co-efficient of varia-

cOMM-CXII
(Turw
 4)

PART-II

3. Answer any eight questions of the following

within 75 words
3x 8
(a) Outline the functional areas of financial
management.
(b) What do you mean by Agency problems ?
(c) Note down the concept of Annuity Due.
(d) What is the need of
Ploughing Back of
Profits ?

(e) Write short notes on Cost of Debt.

) What are the advantages of Internal Rate
of
Return method ?

(g) Define the term capital rationing.

(h) What are the sources of declaring divi-
dends?

() Note down the various sources of working

capital.
 5)

What are the features of the conservativee

approach ?

PART-IV

Answer all questions 7x4

. "Wealth maximisation approach is superior than

profit maximisation." Elaborate.

Or

What do you mean by Risk ? Discuss the

causes and types of risks.

5. What do you Re-investment of

profits ? Discuss
the necessity, factors
ment of profits.
influencing
the Re-invest-

Or

Examine critically the different

for computing
the cost of approaches
merits and demerits of equity. Discuss the
each one.

COMM-C-XII
(Turn Over)
 6)

6. Initial Investment R60,000, Life ofthe Asset-4 2

11509
vears, Estimated net annual cash flows
1st Year 15,000
2nd Year 20,000
3rd Year - 30,000

4th Year 720,000

Calculate Internal Rate of Return.

Or
SQ limited belongs to a risk class for which
the appropriate capitalisation rate is 10%. It
currently has outstanding 5,000 shares selling at
100 each. The firm is
contemplating
ration of dividend of 76 per share at
the decla-
the end of
the current financial
year. The company expects
to have a net income of
R50,000 and has a
proposal for making new investment of
1,00,000. Examine under MM hypothesis, the
payment of dividend does not effect the value of
the company.

sOMM-C-XII 35o
(Continued)

Oo
2 O
 7

7. Discuss the importance of Adequate working

capital.

Or

Explain the various sources of short term

working capital finance.

COMM-C-XII