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A

Group 'A'

Very short answer questions. Candidates are required to give their answers in their own words as far as practicable.

11 questions·1 marks each
1short1 marks

State any two responsibilities of financial manager.

financial-managementfinancial-manager
2short1 marks

Which financial statement shows financial position of a business?

financial-statementsbalance-sheet
3short1 marks

Write the meaning of fixed assets turnover ratio.

ratio-analysisfixed-assets-turnover
4short1 marks

State any two advantages of short term debt for a company.

short-term-debtfinancing
5short1 marks

Write any two features of optimal capital structure.

capital-structureoptimal-capital-structure
6short1 marks

Mention any two differences between preferred stock and common stock.

preferred-stockcommon-stock
7short1 marks

List any two characteristics of bond.

bonddebenture
8short1 marks

लगानी निर्णय भनेको के हो ? (What is investment decision?)

investment-decisioncapital-budgeting
9short1 marks

भावि दरलाई परिभाषित गर्नुहोस् । (Define forward rate.)

forward-rateexchange-rate
10numeric1 marks

If short term source is Rs. 3,00,000 which is 40% of the total debt capital, find out the total debt of a company.

Numeric answer (Rs.)

capital-structuredebt
11numeric1 marks

If current exchange rate is Rs. 130 per dollar, how much dollar is needed for Rs. 68,900?

Numeric answer (USD)

exchange-ratecurrency-conversion
B

Group 'B'

Short answer questions.

9 questions·5 marks each
12long5 marks

How business finance is interrelated with economics? Explain.

business-financeeconomics
13long5 marks

How income statement is prepared? Describe with suitable example.

income-statementfinancial-statements
14numeric5 marks

How much annual percentage cost and effective annual rate when the credit terms are 4/15, net 35? [2+3]

Numeric answer

credit-termscost-of-credit
15numeric5 marks

How much amount of breakeven point in rupees and operating fixed cost, if unit selling price Rs. 60 and unit variable cost Rs. 40 with break-even point is 8,000 units? [2+3]

Numeric answer (Rs.)

breakeven-analysiscost-volume-profit
16long5 marks

Explain any five types of investment proposals.

investment-proposalscapital-budgeting
17numeric5 marks

A company has annual sales of Rs. 8,00,000 with an inventory turnover ratio of 8 times. It has receivable collection period of 24 days and a payable deferral period of 18 days. (Assume 340 working days in a year.)

Required: [2+3]

a) Inventory Conversion Period

b) Cash Conversion Cycle

Numeric answer (days)

cash-conversion-cycleworking-capital
18long5 marks

Explain any five factors influencing dividend decision.

dividend-policydividend-decision
19long5 marks

Describe the role of multinational corporation in development of a country.

multinational-corporationinternational-finance
11(OR)numeric5 marks

अथवा (OR)

Exchange rate of one Singapore Dollar (SGD) is 1.8484 Australian Dollar (AUD), where as one Singapore Dollar is 1.3748 American Dollar (USD). Find out the cross rate between Australian Dollar (AUD) and American Dollar (USD).

Numeric answer (AUD per USD)

cross-rateexchange-rate
C

Group 'C'

Long answer questions.

3 questions·8 marks each
20numeric8 marks

Following information of Balance Sheet given as:

विवरण (Items)AssetsLiabilities
नगद (Cash)1,00,000
आसामीहरू (Debtors)2,00,000
मेशिनरी (Machinery)4,00,000
मौज्दात (Stock)50,000
पूँजी (Capital)3,00,000
ऋणपत्र (Debenture)1,00,000
साहुहरू (Creditors)80,000
अधिविकर्ष (Overdraft)1,20,000
शेष मुनाफा (Retained Earnings)1,50,000
जम्मा (Total)7,50,0007,50,000

Additional Information: i) Net profit for the year: Rs. 1,00,000 ii) Sales: Rs. 15,00,000

Required: [8×1 = 8]

a) Current Ratio b) Liquid Ratio c) Inventory turnover Ratio d) Debt-Equity Ratio e) Total Assets Turnover Ratio f) Return on Capital Employed g) Return on Equity h) Net Profit Ratio

Numeric answer

ratio-analysisbalance-sheet
21long8 marks

Write the meaning of ordinary share. Explain any five features of ordinary share. [3+5]

अथवा (OR)

a) A company has issued Rs. 1,000 par, 12% coupon perpetual bonds. If required rate of return to the bond holder is 15%, what should be the value of bond? [4]

b) A company has paid a cash dividend of Rs. 20 per share in last year. Shareholders required 14% return on investment. If expected rate of growth is 8% per year,

Required: Value of stock at present [4]

ordinary-sharebond-valuationstock-valuation
22numeric8 marks

Following informations are given as:

YearCash Flowपरियोजना (Project) A (Rs.)परियोजना (Project) B (Rs.)
0NCO(4,00,000)(4,00,000)
1CFAT1,50,0001,64,000
2CFAT1,80,0001,64,000
3CFAT1,90,0001,64,000
4CFAT2,00,0001,64,000
5CFAT1,00,0001,64,000

Other Information: i) Required rate of return: 12%

Required: i) Net present value of both projects [4+2] ii) Which project is more profitable? Why? [1+1]

Numeric answer (Rs.)

npvcapital-budgeting