SVRE's NMIMS

scHoOL OF BuslNrss MANAGEMENT

Program: MBA (HR) , Year: I Trimester: Ill
Academic Year: 2021-2022 '
Subject: Financial Management ''

Marks: 40 ~
Date: 23 March 2022 Time: 4.00 pin to 6.00 pin
Durations: 2 (hrs)
No. of Pages: 0'
Final-EHamination 12021 -221 ,

Instructions: Candidates should read carefully the instructions printed on the question paper
and on the cover of the Answer Book, which is provided for their use.
NB:
1. This is a closed book exan. No reading material is allowed to carry in this exam.
2. Use of Calculator (both normal and scientific) for calculation purpose is allowed.
3. Figures in brackets on the right hand side indicate full marks.

1. Describe the Modigliani and Mill`er hypotheses I and 11 with and without taxes along with

their formulas. (10 Marks) (CLO 1)

2. What is the value of 8 years,10% semiannual coupon bond with par value of 1000, if
required rate of return is l2%? (10 Marks) (CL0 2)

3. A company is evaluating a project whose expected cash flows are as follows:

yec'r Cczsfe/ow (Rs. in million)

0 (25)
1 17

2 18

3 18

4I 16 I

Calculate Net Present Value of this project if discount rate is 14%. (10 Marks) (CLO 3)

~-4. Calculate the expected dividend next year if the current year EPS is Rs. 100, current

dividend declared is Rs. 20, target dividend payout ratio is 0.2, next year expected EPS is
200 and speed of adjustment is o.4. (10 Marks) (CL0 3)