BBS 2nd Year Fundamentals of Financial Management Question 2078

BBS 2nd Year Fundamentals of Financial Management Question 2078
BBS 2nd Year Fundamentals of Financial Management Question 2078

Here are the TU BBS 2nd Year Fundamentals of Financial Management Question 2078. BBS means Bachelors in Business Studies.

BBS 2nd Year Fundamentals of Financial Management Question 2078

University: Tribhuvan University

Program: 4 years

Subject: Fundamentals of Financial Management

Subject Code: MGT 215

Full Marks: 100

Pass Marks: 35

Hours: 3 hours

All the candidates are requested to write their answers in their own words as far as possible.

Group: ”A”

Brief Questions Answer ( 10*2 = 20 )

Attempts All questions

1. Write the meaning of financial management.

2. How does an ordinary annuity differ from an annuity due?

3. Define the terms risk. How is it measured?

4. What do you mean by Cash break even?

5. In what situation does a firm prefers stock dividend?

6. Why does a firm prepare cash budget?

7. Lumbini hotel has just issued 8 percent coupon bonds on the market with 7 years to maturity. Bonds have a par value of Rs. 1000. The bonds make annual payments and currently sell for Rs. 850. What is approximate YTM?

8. A firm has DOL of 1.5 times and DFL of 2 times. Its net income is Rs. 40,000. What is degree of total leverage? If sales increase by 10%, What will be its new net income?

9. Gurash Pvt Ltd uses 10,000 units of a product per year on a continues basis. The product has carrying cost of Rs. 20 per unit per year and fixed cost of Rs. 1000 per order. What is its EOQ?

10. Delicious Biscuits company’s inventory conversion period is 30 days, and an average collection period is 40 days. Account payable is paid approximately 20days after they arise. Calculate the firms operating cycle and cash conversion cycle.

Group B

Descriptive Answer Questions ( 5*10 = 50 )

11. Explain the significance of working Capital Management System.

12. The management of Pashupati Publication Pvt Ltd decided to buy a printer taking a loan of Rs. 30,000 for 3 years from bank of Asia. The loan bears an annual interest of 13 percent and calls for equal annual installment payments at the end of each of the 3 years.

a. Calculate amount of annual payment.

b. Prepare loan amortization schedule.

c. Calculate equal monthly installments (EMI).

13. Following data apply to Hi-tech Company (Rs in Thousands)

Cash and marketable securities: Rs. 100

Sales: Rs. 1000

Fixed Assets: 283.50

Net Income: Rs. 50

Quick Ratio: 2 times

Current Ratio: 3 times

Days sales outstanding (DSO): Rs. 40 days

Return on Equity (ROE): 12%

Calculation is based on 360 days.

Hi-Tech has not issued any preferred stocks.

Find: Hi-Tech’s following ratios

1.Account Receivable 2. Current Liabilities 3. Current Assets 4. Total Assets 5. total debt and 6. Return on Assets.


Hence, these are the question of 2078.

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