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Total No. of Questions : 5l

SEAT No. :

P6889 [?otal No. of Pages

4
[586 11
o
S. .8.A. o
LIBRARY
3(}4-SC-FIN-{}3- FXNANCIALMANAG
-(
(Semester - IID *

Time:2% Hotu,sl
t'hf*x. h{urlis : 5{}
Instructions to
1) cotnltulsoty,
cfirry equal msrks.

L
8t)
-t t -q,n.,
\r,.1
a) Detlne

b) What clo you mean by C)

c) What is Capital B
:....
i1.
d) Define Cash

e) what is Dividencl? - ''=

;if :

0 Define tire terrn'\hi tsased Managetnent. j'1*,

L bil.
i..iu."'
i3"-
ct\
b/ What is Levelage? B'tr

h) What is Ronus Share? f':

tt:

82) Ans."ver any 2 out of 3 ('5 rnarks each) : I

a) Explain the Process of Capital

b) Discuss the Objectives of Tfade Credit., ":

']:

c) Distinguish betrvcen interinr Divicienciand Final Dividend.

ET{},
 i

Q3) Ansrver any 1 out of 2 {1A rnarl<s each)

a) Following are the summarized Sheet of Canon Ltd. as on 31"
march 2021 and 2A22.You are to prepare a Fund Flow Statement
for the year ended 31*' t10l
Sheet
Liabilities Assets AmountRs. AmountRs.
3l.3.agat 31;3.2022
Share Capital 5,00.000 Gooclu,ill It),000
Reserye 1.20,000 Landand 4"t.)0,000 3,80,000
Protrt & Loss A/c 61.,744 Buiiding 3,00,000 3,39"000
Long-term 000 2.70:40A Plant ancl 2.00,000 1.48"000
Creditors 0, 000 Machinerv 1.50"0n0 1.:8.400
Provision 50,f)00 70.000 1- lrtri
Stock l.{ll}{l : 1",

Delrtors
Cash ir
Total Rs. 10,61,000 10,21,600 " 10,61000 18,21,600
Additional Infarmation I
i) Depreciation has written t and Machinery Rs. 28.0t)0
and on Land and B
ii) Provision for Tax the year Rs. b6.L){X}
ii, A dividend of paid.

b) The Balance and Loss Account of Pravii Ltd. is gir,en

belor.r,. (Rs. in mill I {
I

Balancc Sl:cet as 0ll -i 1.3.2 422 Plo fi t ancl Los

a
JI 3
Liabilities Assets Net Sales 1200

.l
Equrty 600 Fixed Assets 72A 1032
Debt 440 Current Assets 280 168
Total Rs.1000 Total Rs. 1000 48
P l' 1ZtJ

JO
B4
1) cost of Equity 18% and Interest on ic
r,, |LL1oL
/V.

ii) N4arginal: Tax Rate is 30%. d

ui) flalculate EVA by four different tnethcris

LIB{TARY
t{ft6{ll-? l1
rl\

84) Answ'er any I out of 2 (10 marks each)

a) Atlas for kids. Its present sale
is Rs: period. The conrpanv is
contemplating an increase credit perir:d rvith a rrier,v tr-r increasing
sales. Present le &re 7}Yo of sales and the total fixed costs
I{s. I lakhs per expects per-tax return on investment
({!)2 2s%. S are given as Lrneicl : l1r)l
Proposed Crsdii Pol icy- Aver:age Col Iection Period ExpectedAnnual Sales
t:
J\" ,,

30 days 65

40 days 70

50 days l4
,
(i:fv 60 days 75
L
Yon ar[ rcqutrcd to to be adoptecl. Assume
360 iiays in a ye'dr. to t-uvo cligits altcr tho
decimal.

b) Prakash Ltd. has the fo Strucfure - [1sl

Equity Shares of Rs. ,00,ri00

30,00,1100 for
t availilble -
i) Ttr raise entire anrount throrrglr Etltritl Shlrrcs t,l rts. lC cae lr.
ii) To raise entire amount by Temr Loarr {.g1,1t\(tiir

ii, to raise 50% arnount by Equiff ancl balancc

by 16% Term Loan
rg to raise Rs. 16,00,000 by Equity I0 each. I{s. 8.00.00il
by 16% Term Loan and 1l{lt
la. o Sharcs.

Assume that Income Tax Rate is 507o aael.new EI]IT is Rs. i 6.0ti,00t)
Advise the company regarding sel ec,tlon of Capital Structure on the
basis of EPS. +'
[s86Sl-311
gS) a) Answer any 1 out of 2 (10 marks each) :

Project Initial Inve$'{rnent \*P\' :lt tllr' ;:{:iril*llt'i:tir

Required (Rs.) Cost o{ Capital (Rs.}
,'tJ

A 40,000

B 70,000
i I

C ' 1,00,000 32"000

'."-!
D 4,00,000 5U,{.}0{)

k-, 2,00,000 60,000

available Rs. 6,00,000. Detennine the best combination of

pl"oJ that the proiects are divisible ll si
011
.L:::
b) 7\pp1e lncorporation belongs tti clus.' ol' wliicli tltc tt111:t upt"titl.ii:
Capitalization Rate is 107o. It has'1,00,000 shares of Rs. 100
each, The company is tion of dividend Rs. 12 per
share at the end of the ou are required to answer the
follorn ing questions I10l

r) Whirt rvill be the s al lhc r:trri ut'lhu lu;il ll 'r titl t'.ie iti.i

is not

What will be dividend is declared? .:

.i
,

iii) Assuming that pays dir irl*nil, has l\ict lnctrrne iif Rs.
?0,00,000 and tirakes nCIw invest:::ents ofRs.40,00, 000 clur'ing the
periocl, how inanli new shares t:titsf t"re issr-re ri'l

o
sry
d

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*

rs860t-311 4