DEPARTMENT OF MANAGEMENT
DON BOSCO COLLEGE, KOTTIYAM
KERALA UNIVERSITY PREVIOUS YEAR
SOLVED QUESTION PAPERS
Group 2(b) : BM 1243
FINANCIAL MANAGEMENT
Core Course
(2017 Admission. Onwards)
Prepared by:
MR.TONY FRANCIS
Assistant Professor
Dept. of Commerce
Don Bosco College, Kottiyam
, INDEX
Sl No Content Pg. No
1 2017 – solved question paper 3 - 18
2 2018 – solved question paper 19- 33
3 2019– solved question paper 34 - 49
4. 2020– solved question paper 50 - 67
, BM 1243: FINANCIAL MANAGEMENT – Previous year Solved Question Papers
Second Semester B.B.A. Degree Examination, July 2017
Career Related First Degree Programme under CBCSS
Group 2(b)
Core Course: BM 1243 - FINANCIAL MANAGEMENT
(2014 Admission. Onwards)
Time: 3 Hours Max. Marks: 80
SECTION - A
Answer all questions in one or two sentences. Each question carries 1 mark.
1. What is the primary objective of Financial Management?
2. What is meant by retained earnings?
3. What is NPV?
4. What is Operating Leverage?
5. What is Cost of Equity?
6. What is Investment decision?
7. What is capitalization?
8. What is Benefit cost ratio?
9. Define Average Rate of Return?
10. What is Capital Gearing?
(10×1=10 Marks)
SECTION – B
Answer any eight questions. Each question carries 2 marks.
11. Define Current Assets and give four examples.
12. State the decisions involved in financial management?
13. Define Capital Budgeting?
14. Explain the importance of cost of capital?
15. Explain optimum capital structure?
16. Explain Capital Rationing?
17. Distinguish between shares and debentures?
18. Difference between Capital structure and financial structure
19. Illustrate Working capital cycle.
20. What is Receivables management?
21. Explain VED analysis?
22. Write a short note on Scrip dividend?
(8×2=16 Marks)
SECTION - C
Answer any six questions. Each question carries 4 marks.
23. Explain Institutional Finance
24. Explain Inventory management
YNOT Page 3
, BM 1243: FINANCIAL MANAGEMENT – Previous year Solved Question Papers
25. Explain the steps involved in calculating WACC.
26. Differentiate between Gross working capital and Net working Capital?
27. Explain the factors affecting dividend policy.
28. Explain the benefits of factoring?
29. Do the NPV and PI always lead to same investment decision? Discuss
30. A project cost Rs 500000 and yields annually a profit of Rs 80000 after depreciation@
12% p.a but before tax of 50%.Calculate Payback period
31. Following information is given about materials
Annual Usage – 2, 00,000 units
Cost of placing and receiving one order- Rs 80
Annual carrying cost – 10% of inventory cost
Find out Economic order quantity.
(6×4=24 Marks)
SECTION - D
Answer any two questions. Each question carries 15 marks.
32. Prepare an estimate of working capital requirement from the following information of a
trading concern:
a) Project annual sales 1,00,000 units
b) Selling Price Rs 8 per unit
c) Percentage of net profit on sales 25%
d) Average credit allowed to customers 8 weeks
e) Average credit allowed by customers 4 weeks
f) Average stock holding in items of sales requirement 12 weeks
g) Allow 10% for contingencies
33. A company is considering an investment in a project that cost Rs 2, 00,000. The
projecthas an expected life of 5 years and zero salvage value .The company uses
straight line method of depreciation. The company‟s tax rate is 40%. The estimated
earnings beforedepreciation and before tax from the project are as follows:
Year Earnings before depreciation and tax PV factor
@10%
1 70000 0.909
2 80000 0.826
3 1,20,000 0.725
4 90000 0.683
5 60000 0.621
Calculate NPV
34. Explain the factors determining Capital Structure
35. What is meant by financial management? Explain its significance.
(2×15=30 Marks)
YNOT Page 4
DON BOSCO COLLEGE, KOTTIYAM
KERALA UNIVERSITY PREVIOUS YEAR
SOLVED QUESTION PAPERS
Group 2(b) : BM 1243
FINANCIAL MANAGEMENT
Core Course
(2017 Admission. Onwards)
Prepared by:
MR.TONY FRANCIS
Assistant Professor
Dept. of Commerce
Don Bosco College, Kottiyam
, INDEX
Sl No Content Pg. No
1 2017 – solved question paper 3 - 18
2 2018 – solved question paper 19- 33
3 2019– solved question paper 34 - 49
4. 2020– solved question paper 50 - 67
, BM 1243: FINANCIAL MANAGEMENT – Previous year Solved Question Papers
Second Semester B.B.A. Degree Examination, July 2017
Career Related First Degree Programme under CBCSS
Group 2(b)
Core Course: BM 1243 - FINANCIAL MANAGEMENT
(2014 Admission. Onwards)
Time: 3 Hours Max. Marks: 80
SECTION - A
Answer all questions in one or two sentences. Each question carries 1 mark.
1. What is the primary objective of Financial Management?
2. What is meant by retained earnings?
3. What is NPV?
4. What is Operating Leverage?
5. What is Cost of Equity?
6. What is Investment decision?
7. What is capitalization?
8. What is Benefit cost ratio?
9. Define Average Rate of Return?
10. What is Capital Gearing?
(10×1=10 Marks)
SECTION – B
Answer any eight questions. Each question carries 2 marks.
11. Define Current Assets and give four examples.
12. State the decisions involved in financial management?
13. Define Capital Budgeting?
14. Explain the importance of cost of capital?
15. Explain optimum capital structure?
16. Explain Capital Rationing?
17. Distinguish between shares and debentures?
18. Difference between Capital structure and financial structure
19. Illustrate Working capital cycle.
20. What is Receivables management?
21. Explain VED analysis?
22. Write a short note on Scrip dividend?
(8×2=16 Marks)
SECTION - C
Answer any six questions. Each question carries 4 marks.
23. Explain Institutional Finance
24. Explain Inventory management
YNOT Page 3
, BM 1243: FINANCIAL MANAGEMENT – Previous year Solved Question Papers
25. Explain the steps involved in calculating WACC.
26. Differentiate between Gross working capital and Net working Capital?
27. Explain the factors affecting dividend policy.
28. Explain the benefits of factoring?
29. Do the NPV and PI always lead to same investment decision? Discuss
30. A project cost Rs 500000 and yields annually a profit of Rs 80000 after depreciation@
12% p.a but before tax of 50%.Calculate Payback period
31. Following information is given about materials
Annual Usage – 2, 00,000 units
Cost of placing and receiving one order- Rs 80
Annual carrying cost – 10% of inventory cost
Find out Economic order quantity.
(6×4=24 Marks)
SECTION - D
Answer any two questions. Each question carries 15 marks.
32. Prepare an estimate of working capital requirement from the following information of a
trading concern:
a) Project annual sales 1,00,000 units
b) Selling Price Rs 8 per unit
c) Percentage of net profit on sales 25%
d) Average credit allowed to customers 8 weeks
e) Average credit allowed by customers 4 weeks
f) Average stock holding in items of sales requirement 12 weeks
g) Allow 10% for contingencies
33. A company is considering an investment in a project that cost Rs 2, 00,000. The
projecthas an expected life of 5 years and zero salvage value .The company uses
straight line method of depreciation. The company‟s tax rate is 40%. The estimated
earnings beforedepreciation and before tax from the project are as follows:
Year Earnings before depreciation and tax PV factor
@10%
1 70000 0.909
2 80000 0.826
3 1,20,000 0.725
4 90000 0.683
5 60000 0.621
Calculate NPV
34. Explain the factors determining Capital Structure
35. What is meant by financial management? Explain its significance.
(2×15=30 Marks)
YNOT Page 4
